FOREX RAJPUT

Everyone know that the China is future's super power that's why China manage its currency and foreign exchange reserves. There are some extremely hot news from the newspapers of China about the foreign exchange reserves which are as follows:

China has overtaken Japan to become the world's biggest holder of foreign exchange reserves after its stockpile grew US$8.5 billion in February to US$853.7 billion, the China Business News reported on Tuesday.

Japan had reserves at the end of February of US$850.1 billion.

Growth in China's reserves last month slowed from US$26.3 billion in January, the Shanghai newspaper said.

"The massive foreign exchange reserves have brought about many benefits, but they also reflect continued imbalances in the economy," the newspaper said.

China's reserves have ballooned in recent years as the central bank, in order to hold down the yuan, has bought most of the dollars generated by a growing trade surplus, inflows of foreign direct investment and speculative capital.

The average increase in reserves of US$17.4 billion in January and February is close to the average rise of US$16.6 billion a month in the last quarter of 2005.

The reserves total would have been even bigger if Beijing had not used US$60 billion to recapitalise three big banks.

The central bank also sold US$6 billion from its reserves in November under a one-year swap deal with local banks.

Rajput considered and think about mistakes which is done by a trader. Therefore, with some suggestion we point out your mistakes during forex trading. Online forex trading is one of the most lucrative cash generating options available. I am about to reveal some common (and not so common) mistakes which can guarantee failure in forex. Let me show you how to profit where others will fall in online forex trading.

Mistake 1 – You Will Profit From Every Trade

There is no such thing as a foolproof system which can guarantee you profit on every trade – there is simply no such thing. If you are a newcomer to online forex trading pay attention – you can and will not profit from every trade you make.

Mistake 2 – You Can Make Money Without Understanding Forex

Not knowing your playing field is a sure way to hit every bump and hole in it. It’s not enough to read a few articles from your dealer. You should take the time to understand market fluctuations, so you have the knowledge upon which to base your trades.

Mistake 3 – Your Goal Is To Make Money

Many online forex traders fall into the trap of not planning their fx trades and strategy in advance. They honestly felt that having their eyes on their main goal of making money is sufficient to see them through to success. Before beginning, make sure you have an idea of what kind of trades you are going to potentially make. Open a demo and play around with different methods. If you have invested in a forex trading system, take the time to test it out via a demo account before you risk your won money.

Mistake 4 – You Should Stick With Losing Trades Cause They Always Come Good

Sticking with a losing trade for long enough can be the easiest way to lose serious profits. In fx trading you need to know when it is time to cut your losses and take your profits. It is quite possible to lose all your profits in one single trade so understand when to exit a trade.

Mistake 5 – Basing Trades On Instinct Rather Than Fact

Online forex trading is a numbers game – plain and simple. If you want to make money you must never base any trades on instinct or a gut feel. Only base your trades on fact and trends – this will ensure you have the greatest chance of success.

Mistake 6 – Trade More Currencies And You Will Increase Your Chances Of Profits

Every single currency has certain behaviours which if you take the time to learn, will improve your chances of profiting from market conditions. You are far better off taking the time to focus and understand 2 different currencies – rather than trying to spread yourself across multiple currencies.

Mistake 7 – Think Long Term – Trade Short Term

This is a big misconception – and a common one at that. Many fx traders fall into this trap – basing trades now on what they think will happen down the track. You have to focus in the present and trade in the now. Miss this and you will always be chasing your tail.

Mistake 8 – Make Money By Always Trading

There is often the temptation to always have a trade going – and that the more trades you make the greater chance of profits. This is not right. You have to be able to read the market, and choose your trades very carefully. This will protect your profits.

Results

Online forex trading is a brilliant way to make extra money, provided you have the knowledge and the tools. I hope I have shown you a few traps that you must avoid in order to succeed in fx trading.

Rajput realised the importance of currency in forex market because currency play an important part in import & export trading, business and mostly in forex trading. Although the foreign exchange market is often billed as a banker's game, currencies can sometimes be great diversification for a portfolio that might have hit a bit of a rut. It's a market that can also offer tremendous opportunity when other global forums enter the doldrums. As a result, knowing a little bit about forex, and the fundamentals behind it, can make significant additions to any trader, investor or portfolio manager's arsenal. Let's take a look at eight currencies every trader or investor should know, along with the central banks of their respective nations. (Absolute beginners might consider a trading course. Read Forex Courses Teach Beginners How To Trade for more information)

If you dont know the trading period of the forex market then read this information which is created by Rajput. Every trader has their own favourite trading methods and therefore will be drawn to particular time frames. So today I thought I’d discuss which time frame I consider to be the best one, ie the most profitable.
It all depends on your trading strategy of course, but in my experience the best time frame to use is the 4 hour chart.
There are several reasons for this. The first reason is simply because my main trading strategy (see right for more details), which I have been perfecting over the years, generates consistent profits on this particular time frame (with the help of the daily chart for determining the overall trend).
Secondly trading the 4 hour time frame gives you the best of both worlds in that it enables you to generate the kind of profits that a lot of short-term traders are able to generate every single day, whilst ensuring that you don’t necessarily have to be sitting at your computer all day long because you only need to be alert when a good set-up looks like presenting itself.
This brings me on to my next point which is that trading the 4 hour charts is a very relaxing way to trade the markets. You can analyze various different currency pairs and really take your time planning your trades. This is certainly not the case with short-term trading where you have little time to think and have to be very quick on the button to realize any gains, or minimize any of your losing trades.
This time frame is just about ideal in my opinion because you can generate winning trades of say 100-200 pips in a single day or you can let them run for a few days to capture 300-500 pips in some instances. Just one of these trades per week can give you an excellent full-time income and I think you would agree that it’s much better to spend your week looking for one or two high probability set-ups on this time frame rather than trading lots and lots of positions on the shorter time frames which may only give you 10-20 pips per trade.
Also because each trade doesn’t necessarily last that long (often no more than a few days at most) you avoid much of the boredom that arises when you trade the daily or weekly charts, for example. Some people like to trade the daily charts but you do need a great deal of patience. You also need to use fairly large stop losses to ensure that the price ultimately moves in your favour without being stopped out prematurely.
So as I say I personally think the 4 hour time frame is by far and away the best time frame to trade, although different time frames obviously suit different strategies.

Do you want to change your life style? Your answer is Yes, because everyone in this world want luxuries and healthy life style. In order to be rich and make loads of money with forex, it is a must for anyone who is serious to have accurate knowledge with the trade. Sure there is no need for any diploma in trading Forex, but in order to succeed, investing time and effort to learn profitably is a dogma.

Lately people have been buzzing about how a great income potential is forex. Getting tired of a monotonous life in the corporate world, there will come a time that people want to be free from all and have a rich lifestyle, to work from home and enjoy the greater things in life. Indeed Forex is a serious consideration and worth inveting on.

Before Forex was not accesible to anybody. But thanks to the modernization and internet, everybody has the fighting chance to get rich and be merry. 

Yes Forex has low cost to operate, lower cost to start, very abundant information resources, flexible trading hours and very high income potential, everybody can get started in Forex in one way or another.

It is one thing to start trading and being profitable Forex trader is different. In order to become profitable in every trade, you will find it imperative to invest some time in learning courses and practicing in a demo account rather than saving all the pain of losses. Concepts such as Moving Averages, Fibonacci levels, Bollinger Bands, etc; are the basic knowledge every trader must have.

But having a good knowledge of these concepts is not everything you need. Fear is your worst enemy. To become a profitable trader, one thing that can free you of this fear is education. As you learn in the ways of the trade, you will find yourself more confident to what trading plans you have. You have to understand that there will be losses and it has happend to the richest traders today. If you truly understand that, there is no way that you can get poor in Forex.

You want to change the way you live for the better? A profitable forex trader must be ready with education and psychological preparation. This is the only way to make the market work in your favor.

You know Rajput needs money that why we wrote this article to improve your financial position. Everyday, currencies are traded in an international foreign exchange market, otherwise known as the forex market, with the main marketplaces (otherwise known as bourses) existing in the world's financial centes New York, London, Tokyo, Frankfurt and Zurich. Historically, the only way to participate was from the trading floor of one of these bourses, but today, people can trade forex from anywhere through a secure internet connection and a PC. 

Today's traders operate in a global network, taking positions in the market and making investment decisions based on either relative value between two currencies, or a particular currency's actual price. Currency value fluctuations are constantly renegotiated through trading activity, and this activity, and the corresponding currency values are also indicators of the levels of currency supply. 

An example of market behaviour greater demand for the Euro might indicate a weakening supply. Low supply and increased demand will drive the price of the Euro up against other currencies like the dollar, until the price better reflects what traders are prepared to pay when short supply exists. Another way to look at this situation is this higher demand means it will cost more dollars to buy the Euro, which equates to a weakening of the dollar in comparison. Analysis of situations such as in this example forms the basis for a trader's investment decisions, and they will purchase or sell currency accordingly. 

This should be remembered, as while many see the foreign exchange market as the vehicle for converting their home currency while travelling abroad, many others choose to use the market to advance their financial position and secure their future. In the end we all thanks to Rajput for this act of kindness from him.

Rajput wants to know helpful strategy before going into forex market. Therefore, two important aspects of forex market are available for you. Technical analysis and fundamental analysis are the two basic genres of strategy in the forex market - just like in the equity markets. But technical analysis is by far the most common strategy used by individual forex traders. Here is a brief overview of both forms of analysis and how they apply to forex: 

Fundamental Analysis 

If you think it's difficult to value one company, try valuing a whole country! Fundamental analysis in the forex market is often very complex, and it's usually used only to predict long-term trends; however, some traders do trade short term strictly on news releases. There are many different fundamental indicators of currency values released at many different times. Here are a few: 
Non-farm Payrolls 
Purchasing Managers Index (PMI) 
Consumer Price Index (CPI) 
Retail Sales 
Durable Goods 
Now, these reports are not the only fundamental factors to watch. There are also several meetings from which come quotes and commentary that can affect markets just as much as any report. These meetings are often called to discuss interest rates, inflation, and other issues that affect currency valuations. Even changes in wording when addressing certain issues - the Federal Reserve chairman's comments on interest rates, for example - can cause market volatility. Two important meetings to watch are the Federal Open Market Committee and Humphrey Hawkins Hearings. 

Simply reading the reports and examining the commentary can help forex fundamental analysts gain a better understanding of long-term market trends and allow short-term traders to profit from extraordinary happenings. If you choose to follow a fundamental strategy, be sure to keep an economic calendar handy at all times so you know when these reports are released. Your broker may also provide real-time access to such information. 

Technical Analysis

Like their counterparts in the equity markets, technical analysts of the forex analyze price trends. The only key difference between technical analysis in forex and technical analysis in equities is the time frame: forex markets are open 24 hours a day. As a result, some forms of technical analysis that factor in time must be modified to work with the 24-hour forex market. These are some of the most common forms of technical analysis used in forex: 

The Elliott Waves 
Fibonacci studies 
Parabolic SAR 
Pivot points 
Many technical analysts combine technical studies to make more accurate predictions. (The most common is combining the Fibonacci studies with Elliott Waves.) Others create trading systems to repeatedly locate similar buying and selling conditions.

Following are the some important advantages of forex trading which is sort out only for you by Rajput which are as follows:

Highest Liquidity:
There is always buyer and seller in Forex market. The Forex market absorbs trading volumes and per trade size which dwarfs the capacity of any other market. On the simplest level, liquidity is a powerful attraction to any investor as it suggest the freedom to enter or exit the market at any time. Forex traders benefit from the ability to respond to breaking news immediately. There is no other market or investments that you can ever make an exit exactly at the time you wish to.

24 Hour Trading:
The Forex market is open 24 hours daily. When Asia market is close, the European market start follows by the USA market and continue by Asia market again the next day. Thus, this allows Forex traders to take positions regardless of the hour and locations.

Profit on Bulls and Bears:
"Buy low sell high", this is what every investor knows and practising in whatever market. One of the most exciting advantages of Forex trading is the ability to generate profits whether in the bull or bear condition. In the Forex market, apart form buy low sell high, Forex traders can always sell high and then buy back at lower price to generate profit.

High Leverage:
In Forex trading, a small margin deposit can control a much larger total contract value. 200 to 1 leverage enable Forex traders to buy or sell $100,000 worth of currencies with $500 margin deposit. It gives Forex traders the ability to make extraordinary profit.

No Commissions or fees:
Trading Forex has much lower transaction costs than other investment products, a very important point for active traders.

Free Resource for Forex Trading:
There are lot's of online way for free resources for foreign trading. You can visit www.forex.com or www.google.com and just type forex and click on search button then you can see lots of informative sites. Another way of knowing forex trading is from the books of big business which are available in book shop and markets.

Rajput told us "Investment management companies (who typically manage large accounts on behalf of customers such as pension funds and endowments) use the foreign exchange market to facilitate transactions in foreign securities. For example, an investment manager bearing an international equity portfolio needs to purchase and sell several pairs of foreign currencies to pay for foreign securities purchases.
Some investment management firms also have more speculative specialist currency overlay operations, which manage clients' currency exposures with the aim of generating profits as well as limiting risk. Whilst the number of this type of specialist firms is quite small, many have a large value of assets under management (AUM), and hence can generate large trades".

Following are the some important and useful appendix and glossary which is sort out by me (RAJPUT):

• Ask (Offer) — price of the offer, the price you buy for.
• Aussie — a Forex slang name for the Australian dollar.
• Bank Rate — the percentage rate at which central bank of a country lends money to the country's commercial banks.
• Bid — price of the demand, the price you sell for.
• Broker — the market participating body which serves as the middleman between retail traders and larger commercial institutions.
• Cable — a Forex traders slang word GBP/USD currency pair.
• Carry Trade — in Forex, holding a position with a positive overnight interest return in hope of gaining profits, without closing the position, just for the central banks interest rates difference.
• CFD — a Contract for Difference — special trading instrument that allows financial speculation on stocks, commodities and other instruments without actually buying.
• Commission — broker commissions for operation handling.
• CPI — consumer price index the statistical measure of inflation based upon changes of prices of a specified set of goods.
• EA (Expert Advisor) — an automated script which is used by the trading platform software to manage positions and orders automatically without (or with little) manual control.
• ECN Broker — a type of Forex brokerage firm that provide its clients direct access to other Forex market participants. ECN brokers don't discourage scalping, don't trade against the client, don't charge spread (low spread is defined by current market prices) but charge commissions for every order.
• ECB (European Central Bank) — the main regulatory body of the European Union financial system.
• Fed (Federal Reserve) — the main regulatory body of the United States of America financial system, which division — FOMC (Federal Open Market Committee) — regulates, among other things, federal interest rates.
• Fibonacci Retracements — the levels with a high probability of trend break or bounce, calculated as the 23.6%, 32.8%, 50% and 61.8% of the trend range.
• Flat (Square) — neutral state when all your positions are closed.
• Fundamental Analysis — the analysis based only on news, economic indicators and global events.
• GDP (Gross Domestic Product) — is a measure of the national income and output for the country's economy; it's one of the most important Forex indicators.
• GTC (Good Till Cancelled) — order to buy or sell of a currency with a fixed price or worse. The order is alive (good) until execution or cancellation.
• Hedging — maintaining a market position which secures the existing open positions in the opposite direction.
• Jobber — a slang word for a trader which is aimed toward fast but small and short-term profit from an intra-day trading. Jobber rarely leaves open positions overnight.
• Kiwi — a Forex slang name for the New Zealand currency — New Zealand dollar.
• Leading Indicators — a composite index (year 1992 = 100%) of ten most important macroeconomic indicators that predicts future (6-9 months) economic activity.
• Limit Order — order for a broker to buy the lot for fixed or lesser price or sell the lot for fixed or better price. Such price is called limit price.
• Liquidity — the measure of markets which describes relationship between the trading volume and the price change.
• Long — the position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.
• Loss — the loss from closing long position at lower rate than opening or short position with higher rate than opening, or if the profit from a position closing was lower than broker commission on it.
• Lot — definite amount of units or amount of money accepted for operations handling (usually it is a multiple of 100).
• Margin — money, the investor needs to keep at broker account to execute trades. It supplies the possible losses which may occur in margin trading.
• Margin Account — account which is used to hold investor's deposited money for FOREX trading.
• Margin Call — demand of a broker to deposit more margin money to the margin account when the amount in it falls below certain minimum.
• Market Order — order to buy or sell a lot for a current market price.
• Market Price — the current price for which the currency is traded for on the market.
• Momentum — the measure of the currency's ability to move in the given direction.
• Moving Average (MA) — one of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential Moving Average (EMA), Weighted Moving Average (WMA) etc. are just the ways of weighing the rates and the periods.
• Open Position (Trade) — position on buying (long) or selling (short) for a currency pair.
• Order — order for a broker to buy or sell the currency with a certain rate.
• Pivot Point — the primary support/resistance point calculated basing on the previous trend's High, Low and Close prices.
• Pip (Point) — the last digit in the rate (e.g. for EUR/USD 1 point = 0.0001).
• Profit (Gain) — positive amount of money gained for closing the position.
• Principal Value — the initial amount of money of the invested.
• Realized Profit/Loss — gain/loss for already closed positions.
• Resistance — price level for which the intensive selling can lead to price increasing (up-trend).
• Scalping — a style of trading notable by many positions that are opened for extremely small and short-term profits.
• Settled (Closed) Position — closed positions for which all needed transactions has been made.
• Slippage — execution of order for a price different than expected (ordered), main reasons for slippage are — "fast" market, low liquidity and low broker's ability to execute orders.
• Spread — difference between ask and bid prices for a currency pair.
• Standard Lot — 100,000 units of the base currency of the currency pair, which you are buying or selling.
• Stop-Limit Order — order to sell or buy a lot for a certain price or worse.
• Stop-Loss Order — order to sell or buy a lot when the market reaches certain price. It is used to avoid extra losses when market moves in the opposite direction. Usually is a combination of stop-order and limit-order.
• Support — price level for which intensive buying can lead to the price decreasing (down-trend).
• Swap — overnight payment for holding your position. Since you are not physically receiving the currency you buy, your broker should pay you the interest rate difference between the two currencies of the pair. It can be negative or positive.
• Technical Analysis — the analysis based only on the technical market data (quotes) with the help of various technical indicators.
• Trend — direction of market which has been established with influence of different factors.
• Unrealized (Floating) Profit/Loss — a profit/loss for your non-closed positions.
• Useable Margin — amount of money in the account that can be used for trading.
• Used Margin — amount of money in the account already used to hold open positions open.
• Volatility — a statistical measure of the number of price changes for a given currency pair in a given period of time.
• VPS (Virtual Private Server) — virtual environment hosted on the dedicated server, which can be used to run the programs independent on the user's PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.

Keep it up forex traders. Every Forex trader like any other professional needs tools to trade. One of these tools, which is vital to be in market, is a Forex broker and specifically for Internet - on-line Forex broker - a company which will provide real-time market information to trader and bring his orders to Forex market. While choosing a right Forex broker things to look for are the following:

* Being a professional company you can trust
* Provide you with real-time quotes
* Execute your orders fast and accurately
* Don't take a lot of commissions
* Support the withdraw/deposit methods that you can use

For beginning Forex traders I recommend these four brokerage companies that are probably the best Forex brokers to start with:

* FXOpen — one of the most popular and progressive brokers with Meta Trader platform and comfortable trading conditions for all kind of traders.
* InstaForex — a reputable Meta Trader 4 brokers, allows Islamic Forex trading accounts, while you can deposit and withdraw money via Web Money.
* FXcast — good because you can start trading Forex with as little as 10$, use Meta Trader 4 platform and the dozen of various deposit and withdraw methods, including Web Money, e-Bullion and wire transfer.
* LiteForex — broker that supports Meta Trader 4 Forex trading platform and doesn't require a lot of money to start with.

Amazing psychology. While learning a lot about market analysis and money management is an obvious and necessary step to be a successful Forex traders, you also need to master your emotions to keep your trading performance under strict control of mind and intuition. Controlling your emotions in Forex trading is often a balancing between greed and cautiousness. Almost any known psychology practices and techniques can work for Forex traders to help them keep to their trading strategies rather to their spontaneous emotions. Problems you'll have to deal while being a professional Forex trader:

* Your greed
* Over trading
* Lack of discipline
* Lack of confidence
* Blind following others' forecasts

These are very professional books on psychology written specially for financial traders:

* Calming The Mind So That Body Can Perform
* The Miracle of Discipline

Even if you master every possible method of market analysis and will make very accurate predictions for future Forex market behavior, you won't make any money without a proper money management strategy. Money management in Forex (as well as in other financial markets) is a complex set of rules which you develop to fit your own trading style and amount of money you have for trading. Money management play very important role in getting profits out of Forex; do not underestimate it. To get more information on money management read it.

The judgment of Rajput announces that the top and world's best 10 currency traders which are as follows:

RANK	NAME	VOLUME
1	Deutsche Bank	21.70%
2	UBS AG	15.80%
3	Barclay's Capital	9.12%
4	Citi	7.49%
5	Royal Bank of Scotland	7.30%
6	JP Morgan	4.19%
7	HSBC	4.10%
8	Lehman Brothers	3.58%
9	Goldman Sachs	3.47%
10	Morgan Stanley	2.8

Now Rajput share some facts about market size and liquidity so that presently, the foreign exchange market is one of the largest and most liquid financial markets in the world. Traders include large banks, central banks, currency speculators, corporations, governments, and other financial institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements.Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.

Of the $3.98 trillion daily global turnover, trading in London accounted for around $1.36 trillion, or 34.1% of the total, making London by far the global center for foreign exchange. In second and third places respectively, trading in New York accounted for 16.6%, and Tokyo accounted for 6.0%. In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.

Exchange-traded FX futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts.

Several other developed countries also permit the trading of FX derivative products (like currency futures and options on currency futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Most emerging countries do not permit FX derivative products on their exchanges in view of prevalent controls on the capital accounts. However, a few select emerging countries (e.g., Korea, South Africa, India) have already successfully experimented with the currency futures exchanges, despite having some controls on the capital account.

FX futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume..

Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues have made it easier for retail traders to trade in the foreign exchange market. In 2006, retail traders constituted over 2% of the whole FX market volumes with an average daily trade volume of over US$50-60 billion (see retail trading platforms). Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 34.1% in April 2007. The ten most active traders account for almost 80% of trading volume, according to the 2008 Euromoney FX survey. These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market-maker will buy ("bid") from a wholesale customer. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203 on a retail broker. Minimum trading size for most deals is usually 100,000 units of base currency, which is a standard "lot".


These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100/1.2300 for transfers, or say 1.2000/1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e., 0.0003). Competition is greatly increased with larger transactions, and pip spreads shrink on the major pairs to as little as 1 to 2 pips. Hmm all of its base on true research. good luck.

After participated in foreign trading then go through it. Unlike a stock market, where all participants have access to the same prices, the foreign exchange market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest investment banking firms. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. The difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the foreign exchange market are determined by the size of the "line" (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller investment banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail FX-metal market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the foreign exchange market to align currencies to their economic needs.

You want to participate then read it carefully. The foreign exchange (currency or forex, or FX) market is the and the most liquid financial market with the daily volume of more than $3.2 trillion. Trading on this market involves buying and selling world currencies taking the profit from the exchange rates difference. Forex trading can yield high profits, but it is also very risky. Everyone can participate in Forex trading via the Forex brokers.