The forex market changes on a daily basis given the fact that currencies are fluid and economies around the world are continually shifting. A transaction between forex traders generally sees one individual purchasing quantities of one particular type of currency by paying the other forex trader in a specific quantity of a different currency. This practice has been fairly common since the 1970s when the global market switched to floating exchange rates. Prior to this, all currencies had been fixed in an exchange rate regime called the Bretton Woods system. The uniqueness of the forex market is that it is extremely fluid and has a very high volume of trade, which directly leads to liquidity of the market. In addition, a forex trader can live anywhere in the world and work around the clock from 20:15 GMT on Sunday until 22:00 GMT on Friday.

It is true that working with the forex market means a lower level of relative profit, given the fact that the markets aren’t dealing with fixed incomes or rates, but rather are dealing with an extremely fluid market that can change at any given moment. It is also very popular, given the fact that leverage can be used to great effect in order to enhance profit margins depending on the size of the transaction. This feature has led to most day traders referring to the forex as the epitome of the perfect competitive market, free of potential manipulation by the world’s largest central banks.