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INTRODUCTION TO THE FOREX MARKET

Forex- the foreign exchange market –is the World’s most interesting financial market. It is one of the
few markets where sheer size makes it almost impossible for any one person, institution or
government to control. Unlike other Financial Security markets, Forex has no centralized market.

There is no single location where transactions are placed.

Forex is the largest financial market in the world. The market is open 24 hours a day from Monday
to Friday and it records trading volumes of more than $3.5 trillion per day. The massive trade
volume in the Forex market- three times greater than the sum of all US financial markets combined –
makes the Forex market the most liquid market in the WORLD.

Your trades will always be carried out immediately.

In the Forex market, the transactions that are undertaken are necessary because large institutions,
government’s, businesses and individuals need foreign currencies to buy and sell goods and service.
The foreign exchange markets allow fund managers, banks, companies and individuals to buy and
sell foreign exchange globally.

The market was previously an Inter-Bank market. It was generally conducted between large financial
corporations, brokers and even governments. The market has now moved to such a state that
anyone can participate. However, the market still gets its prices from the largest participants in the
market, based in financial centres such as London and New York.

There are many different types of traders in the Forex market. This is because the amount of money
used in trades can be anything from a few thousand dollars to billions of dollars and the leverage in
the market can vary from 1:1 to as high as 200:1.