Forex or foreign exchange market basically involves trading in either forward market or spot market. Forex in forward market involves trades where deals are fixed for a future period of time and spot market actually involves spot deals and defined at the backed by an exchange which defines the rules of trade.

Currencies which are used for the deals are many and range from USD, AUD, EUR, GBP and JPY. These currencies make up together to form 85% of the total transactions of the total market. Apart from these currencies, there are some minor currencies also. They make up a small portion of the same transactions.