The foreign currency trading market has some of the “largest” characteristics in terms of commercial trade.
The currency trading market is so far the largest market in the investment industry, with an average international foreign exchange trading volume of $1.9 trillion daily, according to the April 2004 statistics of the Bank for International Settlements (BIS) study. It is composite of the following components:
* 1,300 billion dollars worth of derivatives (the generic term for currency trading investment from which its pay-offs over time are derived from the performance of assets and other factors such as interest and exchange rates or various indices);
