The derivatives market is currently the largest financial trading market in the world, with an average daily turnover of approximately $4 trillion. The exchange rates of the world’s currencies float and are traded in the form of currency pairs, such as the euro against the U.S. dollar (EUR/USD) and the U.S. dollar against the Japanese yen (USD/JPY). It represents a transaction in which one currency is bought while another is sold in a currency pair.