FOREX TREDING

The foreign exchange market is the largest and most  financial market in the world. Traders include large banks,  currency , corporations, , and other . The average daily volume in the global foreign exchange and related markets is continuously growing. Daily turnover was reported to be over 3.2 trillion in April 2007 by the  Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008Of the $3.98 trillion daily global turnover, trading inaccounted for around $1.36 trillion, or 34.1% of the total, making London by far the global center for foreign exchange. In second and third places respectively, trading in accounted for 16.6%, and  accounted for 6.0% In addition to "traditional" turnover, $2.1 trillion was traded in Exchange-traded FX  were introduced in 1972 at theand are actively traded relative to most other futures contracts.Several other developed countries also permit the trading of FX derivative products (like currency futures and options on currency futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Most emerging countries do not permit FX derivative products on their exchanges in view of prevalent controls on the capital accounts. However, a few select emerging countries (e.g., Korea, South Africa, Indiahave already successfully experimented with the currency futures exchanges, despite having some controls on the capital account.

Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues have made it easier for retail traders to trade in the foreign exchange market. In 2006, retail traders constituted over 2% of the whole FX market volumes with an average daily trade volume of over50-60 billion Because foreign exchange is an  market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 34.1% in April 2007. Due to London's dominance in the market, a particular currency's quoted price is usually the London market price. For instance, when the  calculates the value of its  every day, they use the London market prices at noon that day.