Forex Market Structure and Size

The Forex market does not have a “rooftop structure” (a single supervising body and trading limitations). It is the most popular and most traded market in the world, consisting of private groups, small and medium-sized traders, commercial and public companies, banks and governments. Trading is electronic and online and takes place simultaneously around the globe, 24 hours a day.

The most traded currency is the US dollar. It accounts for a bit more than 85% of the total traded currencies around the world. This is followed by the Euro with almost 40% and the Yen with 18%. We are at more than 140%. Confused? Remember that total percentage of Forex is 200%. Why? The market is composed of pairs with 2 currencies in each trade. The US has the largest and most stable economy in the world, which is why the US Dollar constitutes 62% of the total currencies reserves worldwide.

Other instruments we should note as we progress are those of the developing markets, such as Brazil, Turkey, and Eastern Europe republics.

Take a look at the distribution of currencies in the Forex market (total = 200%!)

Trades take place in real time, around the clock. The market is highly dynamic and very volatile, with outstanding profit possibilities and nonstop information available at all times of the day. Anyone can easily trade: it doesn’t matter whether you are a “heavy trader” or a “small trader” trading from your own home.