The Forex market, also known as the foreign exchange market, is the largest and most liquid financial market in the world.
Unlike stock markets, Forex is decentralized, meaning there is no central exchange where all trades occur.
Instead, it operates through a global network of banks, brokers, and financial institutions.
From the perspective of ICT (Inner Circle Trader), understanding the unique features of this market is crucial for mastering trading strategies.
1. Key Features of the Forex Market from Point of View of ICT
1. Decentralized Nature
Forex trading does not happen on a single exchange. Instead, trades occur electronically over-the-counter (OTC) between participants around the world.
For example, when you trade EUR/USD, your broker connects you to a liquidity provider or another trader.
ICT emphasizes this because decentralization creates liquidity pools that smart money hunts for.
2. Liquidity
With a daily turnover exceeding $7 trillion, Forex is the most liquid market.
High liquidity means tighter spreads and less slippage in normal conditions.
ICT traders use liquidity concepts, such as buy-side and sell-side liquidity, to identify where institutional players are likely to drive price before reversing it.
3. 24-Hour Market
Forex is open 24 hours a day, five days a week.
Trading starts with the Asian session, moves to London, and ends with New York.
ICT stresses the importance of session timing because specific strategies work better during London or New York sessions when liquidity and volatility peak.
4. High Leverage
Brokers allow traders to use leverage, which amplifies both profits and losses.
ICT reminds traders to be cautious, as leverage can wipe out accounts quickly if used recklessly.
For example, with 1:100 leverage, a $1,000 account can control a $100,000 position.
5. Currency Pairs
Forex trading involves pairs such as EUR/USD, GBP/USD, or USD/JPY.
ICT traders focus on major pairs because they are the most liquid and heavily influenced by institutional order flow.
2. Trading Forex Under CFD Contracts as per ICT
CFD (Contracts for Difference) is the most common way retail traders access the Forex market.
Instead of owning the actual currency, you speculate on the price movement of the pair.
Example: If you believe EUR/USD will rise, you go long.
If it rises by 50 pips, you profit.
If it falls by 50 pips, you lose.
ICT highlights that CFDs allow flexibility, but you are essentially trading against your broker or their liquidity providers.
3. ICT Perspective on Forex Market Features
Michael Huddleston (ICT) teaches that the decentralized nature of Forex allows large institutions to manipulate price around liquidity pools.
Retail traders often lose because they chase breakouts, while institutions use these moves to fill orders.
Example: Price may spike above a recent high (liquidity grab) before sharply reversing.
ICT teaches traders to wait for this sweep and then enter in the opposite direction for high-probability setups.
Another ICT perspective is on session-based trading.
The London session often sets the day’s high or low, while the New York session can provide the reversal.
Recognizing these patterns helps traders align with institutional moves instead of fighting them.
4. Conclusion
The Forex market is unique because of its decentralized structure, liquidity, 24-hour access, and leverage.
Trading under CFD contracts makes it accessible to retail traders, but also risky without proper knowledge.
From an ICT perspective, the key is not just understanding these features but using them to read institutional order flow.
By focusing on liquidity, session timings, and manipulation tactics, traders can turn the market’s structure into a powerful advantage.
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