The foreign exchange (FX) market as a whole consists of many market types, including Spot FX, Futures derivatives, Forward Derivatives and finally the CFD derivatives market, which is the most popular for individual clients. Taken together, all forex trading transactions make up the largest and most liquid financial market, with an average daily volume of more than $5 trillion.

The FX CFD derivatives market consists of buyers and sellers, with the main participants being large international banks placing orders through electronic trading systems. This market is traded OTC (not traded on any regulated exchange) and therefore there is no uniform price, but each of the major international banks provide their own quotes with the spot market acting as the reference point for the quotes provided.

It is worth noting that the spot FX market is also an Over-the-Counter market dominated by the major international banks.

In Forex trading, the spot price of a currency pair is influenced by various factors, such as the economic outlook and geopolitical events in that region, as well as news data releases that may be perceived positively or negatively by the market.