Forex, or foreign exchange, refers to the decentralized global market where currencies are traded. It is the largest and most liquid market in the world, with an average daily turnover of over $5 trillion.
Forex trading involves buying and selling currencies in pairs, with the aim of making a profit from the fluctuations in their exchange rates. For example, if a trader believes that the euro will appreciate against the US dollar, they may buy the EUR/USD currency pair at a lower price and sell it at a higher price to make a profit.
Forex trading is typically conducted through a broker or market maker, who provides access to the market and allows traders to buy and sell currencies. Trading can be done electronically or over the phone, and can take place 24 hours a day, five days a week, due to the global nature of the market.
Forex trading is popular among individual traders, financial institutions, and governments who need to exchange currencies for trade, investment, or other purposes. However, it is important to remember that trading always involves risk, and traders should conduct thorough research and seek professional advice before engaging in forex trading.
