Introduction to Forex
The foreign exchange market (forex) is the largest and most liquid financial market in the world, with over $6 trillion traded daily. Unlike stock markets, forex operates 24 hours a day, five days a week.
How Currency Pairs Work
Currencies are always traded in pairs. The first currency is the base, and the second is the quote. For example, EUR/USD = 1.1000 means 1 euro buys 1.10 US dollars.
Key Market Participants
Central banks, commercial banks, hedge funds, corporations, and retail traders all participate in the forex market, each with different goals and volumes.
Getting Started
To begin trading forex, you need a regulated broker, a trading account, and a solid understanding of risk management.