Structure To Forex

• Decentralised 'interbank' market
• Main participants: Central Banks, commercial and investment banks, hedge funds, corporations & private speculators
• The free-floating currency system began in the early 1970's and was officially ratified in 1978
• Online trading began in the mid to late 1990's

Source: BIS Triennial Survey 2007

Trading Hours

• 24 hour market
• Sunday 5pm EST through Friday 4pm EST.
• Trading begins in New Zealand, followed by Australia, Asia, the Middle East, Europe, and America

Size

• One of the largest financial markets in the world
• $3.2 trillion average daily turnover, equivalent to:
  
• More than 10 times the average daily turnover of global equity markets¹
• More than 35 times the average daily turnover of the NYSE²
• Nearly $500 a day for every man, woman, and child on earth³
• An annual turnover more than 10 times world GDP⁴
  
  
• The spot market accounts for just under one-third of daily turnover

1. About $280 billion - World Federation of Exchanges aggregate 2006
2. About $87 billion - World Federation of Exchanges 2006
3. Based on world population of 6.6 billion - US Census Bureau
4. About $48 trillion - World Bank 2006.

Source: BIS Triennial Survey 2007