The stock market has traditionally received the lion’s share of attention in the trading industry, but foreign currency (forex) trading has surged in recent years. Forex’s 24-hour access, liquidity and high leverage has attracted many active traders. Intraday traders can respond immediately to breaking news and events, thus avoiding having to wait for the market to open and risk “paying the gap.”
Because of regulations, capital requirements and technology, access to the forex market was traditionally restricted to hedge funds, large commodity trading advisors (CTAs) and institutional investors. However, in recent years many firms have s prung up to offer forex trading to retail traders.
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