Understanding Forex Trading: The World’s Largest Financial Market
The foreign exchange market, commonly known as Forex or FX , is the largest and most liquid financial market in the world. Every day, over $7 trillion worth of currencies are traded globally. Unlike stock markets that operate within specific hours, the Forex market runs 24 hours a day, five days a week , connecting financial centers across the world — from London and New York to Tokyo and Sydney. Forex trading involves buying one currency while simultaneously selling another. It’s the foundation of international commerce, global investing, and modern finance. Whether you’re a beginner or an experienced investor, understanding the fundamentals of Forex is essential to navigate this dynamic and fast-paced market. What Is Forex Trading? At its core, Forex trading is the exchange of one currency for another at an agreed-upon price. Currencies are traded in pairs — for example, EUR/USD (Euro vs. US Dollar) or GBP/JPY (British Pound vs. Japanese Yen) . The first currency in the pair i...