Currency trading is mainly about buy and sell activities. Currencies are traded on a price interest point normally called pip, system. Every currency pair has their own pip value. The objective of a trader is to hold as many profitable pips as possible. Some pip values are fixed, but some can fluctuate depends on the currency gain or loses strength. Normally I trade by using margin trading, where small deposit is required to control much larger amount in the market.
The forex market is a huge international exchange where different currencies are traded, i.e. both bought and sold. It is estimated to be the largest financial market in the world, and is not governed by the rules of any one country. It is, thus, not regulated and there are no international panels to settle disputes nor are there any clearing houses to stand as guarantors of trades on the exchange. There is nothing more binding than a credit agreement between the buyer and seller in the forex market, and it works.
Forex traders are forced by competition and the need for cooperation to remain honest. There is no way for a trader to survive in the forex market unless he or she keeps up their end of the deal. Most countries will have their own body or association that serve to regulate the forex traders or brokers in that country and ensure that clients' rights are protected. This association will insist on its members accepting the decisions of their arbitration panel in case of disputes.
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