The Foreign Exchange Market commonly known as the "FOREX" or "FX" market is the larger financial market in the world. It trades an average volume of 1.9 trillion dollars per day; this is more than three times the combined daily average volume of the stocks and futures markets. About 5% of the daily turnover is from governments, corporations and fund managers doing business with foreign countries that need to exchange one currency for another, and the other 95% is from speculators who are attracted to the trading opportunities that volatile and changing market conditions create. As oppose to the stock and futures market were large traders can affect market behavior, the large volume of the Forex market make it hard to manipulate creating a market that small speculators can take advantage of.

A multitude of economic forces impact the world's currencies. Some of the forces at work include interest rate differentials, domestic money supply growth, comparative rates of inflation, central bank intervention and political stability. In times of global uncertainty, some currencies may benefit from perceived "flight-to-safety" status. Or, if one country's economic outlook is perceived as strong by market forces, its currency may be firmer than another country's currency, where economic or political conditions are viewed with caution.

In contrast to the world’s stock markets, The FX interbank market is a global network of the world's banks with no centralized location for trading, so it’s traded without the constraints of a central physical exchange. Transactions are instead conducted via telephone or online.

RISK DISCLOSURE

Forex trading has large potential rewards, but also large potential risk. Trading in foreign exchange is speculative and because of the unpredictable nature of the prices of currencies, the purchase or sale of currencies involves high degree of risk that is not suitable for all members of the public. You must be aware of these risks and be willing to understand and accept them in order to invest in the Forex market. Do not trade with money you can't afford to lose. Therefore, funds placed under management should be risk capital funds that if lost will not significantly affect one's personal financial well being.

CTFC Rule 4.41 - Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under- or over- compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are design with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

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