Forex, short for foreign exchange, is the global marketplace for trading currencies. It’s the largest financial market, with over $6 trillion traded daily.
In Forex, traders buy one currency while selling another to profit from changing exchange rates. Unlike stocks, Forex is decentralized and runs 24 hours a day, five days a week.
Key Points:
- Trades are made in currency pairs (e.g., EUR/USD).
- Major participants include banks, businesses, brokers, and individual traders.
- Forex allows trading across different time zones from Sunday evening to Friday evening (GMT).