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);

Currency trading occurs whenever one currency is being traded to another currency. It is also called as Forex, FX, Foreign Exchange or Currency Exchange. There is a set price when trading currencies known as the exchange rate. This is a market where many people have reaped huge profits, although there are some who have forayed into this high risk, high-profit market and came out with only the shirt on their backs.