About the FOREX market

FOREX is the largest and most liquid financial market in the world, referred to as the market closest to the ideal, perfect competition.

The word FOREX stands for the foreign exchange market, also known as currency or FX market.

The average daily turnover rose to $3.2 trillion in April 2007 according to the BIS's (Bank for International Settlements) survey.

Global FOREX ( foreign exchange) market turnover - Daily averages in April, in billions of US dollars
Instrument / Year	1992	1995	1998	2001	2004	2007
Spot transactions	394	494	568	386	621	1,005
Outright forwards	58	97	128	130	208	362
Foreign exchange swaps	324	546	734	656	944	1,714
Estimated gaps in reporting	43	53	61	28	107	129
Total "traditional" turnover	820	1,19	1,49	1,2	1,88	3,21
Turnover at April 2007 exchange rates	880	1,15	1,65	1,42	1,95	3,21

FOREX is an electronic network used by banks, central banks, currency speculators (like you, if you start trading), multinational corporations, governments, and other financial markets and institutions to execute foreign exchange transactions.

The foreign exchange market is unique because of:

its trading volumes,
the extreme liquidity of the market,
the large number and variety of, traders in the market,
its geographical dispersion,
its long trading hours: 24 hours a day except on weekends (from 3pm EST on Sunday until 4pm EST Friday),
the variety of factors that affect exchange rates,
the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
the use of leverage

Please note!
Trading foreign exchange (FOREX) on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You should not invest money that you cannot afford to lose.