Whether you trade stocks, commodities, currencies, or real estate
on Mars, it is important to understand the marketplace in which
you’re working. If you have little market experience, if you’re new
to currencies, or if you want to brush up on market basics, this chapter is
for you. This chapter does not contain an exhaustive history of the modern
foreign exchange (forex) market. Instead, we look at the market from the
perspective of an active trader. You will learn about the roots of the market,
its structure and participants, how currency trades are executed, and the
tools used to conduct business. If you have experience trading other markets,
this chapter will brief you on the unique attributes of the currency
market. If you have little or no experience in trading, the contents of this
chapter are an essential part of learning the business of currency trading.