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The world’s most liquid financial market is the foreign exchange market. The traders comprises of large financial institutions institutional investors central banks, corporations, governments, currency speculators and retail investors. In the global foreign exchange market and other markets, the daily average turnover is growing continuously. As per the 2010 Triennial Central Bank Survey synchronized by the Banks for International Settlements, the normal everyday turnover was US$3.98 trillion in April 2010 (vs. $1.7 trillion in 1998). Out of this $3.98 trillion, the spot foreign exchange transactions was $1.5 trillion and the trading traded in outright forwards was $2.5 trillion , FX exchanges and other currency derivatives.

Out of the total trading the UK trading accounted for 36.7%.This make the UK the most vital hub for foreign exchange trading.  The USA trading accounted for 17.9% and Japan trading accounted for 6.2% and occupied the second and third position respectively.

For the past few years exchange turnover trades foreign exchange futures and options have quickly grown touching $166 billion in April 2010. This is two times the turnover recorded in April 2007.

Four percent of OTC foreign exchange turnover are signified by exchange traded currency derivatives. In the year 1972 at the Chicago Mercantile Exchange, the future contracts were introduced. They are vigorously traded in relation to a good number of future contracts.

A majority of developed nations allow FX trading derivative products such as currency futures and options on currency futures. Fully convertible capital accounts are possessed by these developed nations. The foreign exchange derivative utilization is increasing in several budding economies. Nations like India, South Africa and Korea have recognized currency future exchanges in spite of having some controls on the account capital.

Top 10 currency traders

% of overall volume, May 2010