Forex (also known as FX, foreign exchange) is the market where one currency is being exchanged for another one. The Forex market as a whole is not regulated by any particular entity or government body. Unlike stocks and futures, it is not conducted through a stock exchange.

The volume of transactions taking place on the foreign exchange market is mind-blowing. Some estimates, based on the earlier surveys made by the Bank for International Settlements, mention an average daily figure of around US $3 trillion per day!.

The daily combined turnover of all major world stock exchanges is only around US$200 billion.

Because FX transactions do not need to be registered or reported to any particular exchange, there are many possibilities for its participants. A person willing to invest into FX has many options to choose from and can use different trading methods. Using a market maker allows you to choose the best conditions for trading, use the quotes available and enter large transactions with a minimal initial outlay. Usually you are able to buy/sell currency contracts equal to $100,000 with only $1000 used as a margin, another words use the 1:100 leverage. The size and volatility of the market provides excellent opportunities for making profits, however one should always remember about the risk factor when entering the foreign exchange market.