The Forex market (also known as FX, Forex, or FX market) is the largest and high liquidity exchange field in the world.
The daily trading volume of $ 5.1 trillion is far exceeds the daily trading volume of $ 257 billion on the US equity market.
Forex is traded by banks, other financial institutions, institutional investors and individual traders.
It is very popular from all over the world due to its extremely high liquidity.
Liquidity here means that traders can enter and exit the market 24 hours a day, 5 and a half days a week.
High market liquidity is a very important factor because it has more resistant to price fluctuations compare to low liquidity market.
Another feature is that you can easily switch from one trading session to another and from one currency pair to another.
Currently, the most frequently traded currency pairs are EUR / USD and USD / JPY.
Those two most traded currency pairs are dominated about 41% of all Forex trading annually.
Considering the size of the entire forex market, it is a considerably big percentage.
The US dollar accounts for about 85% of the foreign exchange market volume.
The Euro is the second most traded, accounting for nearly 40% of trading volume.
The third is the Japanese yen, which accounts for about 20% of the transaction volume.
Many Forex traders are likely to concentrate on these major currency pairs as they are primarily focused on the US dollar, Euro and Yen.