What Forex Is

The foreign exchange market, commonly called Forex or FX, is the global marketplace for trading national currencies against one another. It is the largest and most liquid financial market in the world, operating 24 hours a day, five days a week across major financial centers.
Individuals, companies, and banks all participate in Forex for various reasons: tourists exchanging money for a trip, international businesses paying for imports, and investors speculating on currency price movements to make a profit. Essentially, every time you exchange one currency for another, you are participating in the Forex market.

How Trading Works

Forex trading involves simultaneously buying one currency while selling another.
These currencies are traded in pairs, such as the Euro and the US Dollar (EUR/USD). The goal is to profit from changes in the exchange rate between the two. If you believe the Euro will strengthen against the Dollar, you would buy the EUR/USD pair. If your prediction is correct and the exchange rate rises, you can sell it back for a profit. While accessible to individuals through online brokers, Forex is known for its high volatility and use of leverage (borrowed money), which can magnify both gains and losses, making it a high-risk endeavour that requires education and caution.

Disclaimer: All content on this platform is strictly educational. Trading involves risk, and success depends on individual effort, market conditions, and applied knowledge.