FX is 24-hour market where no one person or company can corner the market

Trading opens on Monday at 9 a.m. New Zealand time and stays open to Friday, 4 p.m. Los Angeles time. The market remains continuously liquid through that period. FX's liquidity is a function of the dollar volume flowing between FX traders. More than $1.8 trillion dollars is traded every day. Most of that money is exchanged through the seven "major" currency pairs.

FX trades may be leveraged up to 200:1

FX traders always have the option of leveraging their positions. The leverage starts at 10:1 and could go as high as 200:1. This means that with a $10,000 cash outlay, a position could have the buying power of $2,000,000. Potential profits are thus dramatically magnified, as are the potential losses.

FX has highly stable and predictable volatility curves

Currencies, especially the majors, tend to follow stable growth curves in both the short and long term. This stability allows for simpler technical and fundamental analysis, which enables traders to better determine when to enter and exit trades. The price stability stems from FX's transparency.

Forex, or FX, is the international spot market for foreign currency. In recent years, retail traders have gained access to this market through electronic trading platforms connected to FX market makers that fill orders for foreign currencies.

Unlike stocks and commodities that are traded on central exchanges such as the NYSE or the NASDAQ, foreign currency is bought and sold directly between individual parties. To realize a profit in the FX market, one party must possess a currency that grows in value versus another currency.