The following article is an excerpt from the free forex ebook Introduction to Foreign Exchage from GO Markets. You can read more forex trading news & tips at our forex section.

The foreign exchange market is undisputedly the world’s largest market place with the average daily turnover in excess of US$4 Trillion. Operating 24 hours a day, 5 days a week the foreign exchange market does not operate on a regulated exchange, therefore is known as an OTC (over-the-counter) transaction.

Most people at some point either when travelling or making an overseas purchase would have in some way participated in the FX market, however increasingly many are now turning to the FX market for the purposes of speculation, dealing at prices formerly only available to financial institutions.

One of the prime advantages to trading foreign exchange is the sheer volume of market participants, in turn creating liquidity which cannot be matched by any regulated exchange-traded product or instrument. Like trading the share market, in theory the buying and selling of currencies is extremely simple – buy low, sell high and vicar versa; however in practice learning the basics is essential before putting your hard earned cash on the line.

It’s worth noting trading currency when utilizing a broker such as GO Markets is very different to exchanging cash at your local money exchange. The Introduction to Foreign Exchange ebook is designed to give new or prospective currency traders with the very basics of trading Forex.

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