RSI compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.

The higher a country's interest rates, the greater the demand for that currency. It has been argued that currency speculation can undermine real economic growth, in particular since large currency speculators may deliberately create downward pressure on a currency in order to force that central bank to sell their currency to keep it stable (once this happens, the speculator can buy the currency back from the bank at a lower price, close out their position, and thereby take a profit).

Forex futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume.