Spot Forex Market
The Foreign Exchange (FX) Market is a global dealer to dealer market through which banks, trading companies, multi-national companies and other financial institutions and individual investors exchange one currency for another. It is by far the largest financial market in the world. According to the Bank of International Settlement (BIS), the daily turnover in the global Forex market usually exceeds two trillion dollars a day, which is greater than all other financial markets in the world combined.

Over-the-Counter Trading
Forex is not traded on any organized exchange; it is known as an Over-the-Counter (OTC) market. That is, there is no unified or centrally cleared exchange; rather it is an interconnected group consisting of thousands of dealer network members throughout the world trading different currencies and metals.

The major participants of the FX markets are large banks, central banks, multinational corporations, governments and other financial institutions, who form the so called interbank market, in which the minimum size transaction for these institutions amount to  millions of dollars. Retail traders seldom trade directly in this market but may access to it through a broker or retail Forex dealer.

Margin Trading
The vast majority of Forex transactions is non-physical margin trading, which means a trader does not need to deliver or take delivery of the physical banknotes or the precious metals. Also, Forex Dealers do not require a trader to pay the full amount of the transactions, instead only a good faith deposit, known as margin, is required.

Leverage Effect
With the power of leverage, a trader can control a Forex transaction with a value of up to 100 times greater than the margin deposit. There is a potential that you may generate profits or losses up to 100 times greater than in non-leveraged physical trading.