The foreign exchange market — most often referred as the forex market, or just the FX market — is the most active securities market on this planet. I like to consider that the forex market as the heart of global capital markets. The forex market is the intersections for international finance, the crossway where global monetary flows through.

Today, however, global investment trade flows dominate as the primary non-speculative source of foreign currency market volume. Whether it’s a Chinese government fund investing in U.S. Treasury bonds, or an American pension fund allocating assets to the Brazilian equity market, or an Australian corporation purchasing a British manufacturing facility, each cross-border transaction goes through the forex market at some stage. More than anything else, the FX market is a trader’s market.

Typical daily forex trading volumes surpass $2 trillion per day. That’s a mind-blowing number, isn’t it? To give you some perspective on that size, it’s around 10 to 15 times the size of the daily trading volume on all the world’s share markets combined.

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