The forex market does not have a centralized structure. Instead, it’s made up of an electronic network of institutions, banks, brokers, and individual traders. Entities that enter the market – be it a banking institution or an individual investor – tend to have specific currency needs, and as a result, may speculate on the direction that a particular pair of currencies may move.  These entities post their orders to either buy or sell currencies on the network, allowing them to interact with other currency orders from other entities.