Foreign exchange trading generally refers to the transaction of exchanging one currency for another at an agreed price. The foreign exchange market is the world's largest trading market with daily trading volume exceeding $4400 billion. In contrast, the average daily trading volume of listed securities on the New York Stock Exchange is only $34.52 billion.

More than 85% of foreign exchange transactions are concentrated in major currency combinations, including the euro, US dollar, Japanese yen, British pound, Swiss franc, Australian dollar, and Canadian dollar. Market trading activity is most active during the London trading period, with over 38% of transactions taking place through the London Foreign Exchange Market 3.

The foreign exchange market is the largest financial market in the world, with lower transaction costs compared to buying and selling other financial products. Due to the depth of the foreign exchange market, sliding points are almost non-existent compared to other financial markets. Under normal market conditions and scale, your position in the currency portfolio with the highest liquidity will not experience a sliding point.