Particularly for private speculators, forex trading occurs online.
Most private forex traders participate from home or office, over their
Internet-connected desktop or laptop computers. In fact, the Internet
helps explain the dramatic growth of foreign currency speculation.
Individual traders, perhaps just like you, all over the world can
participate in this online market. Traditionally, futures and equities
trading only occurred in established exchanges, where parties can meet
and agree to a trade. Over time, these exchanges have become subject to
stringent regulations to monitor and moderate activity. Forex is termed
"off-exchange trading", or "OTC" (over-the-counter) as each party deals
directly with each other, where ever they may be. With this freedom
comes some risk, As well, it is subject to very limited regulations.