What is Forex trading?
The forex market is the largest and most liquid financial market in the world. It trades 24-hours a
day, 5 days a week, which makes it a popular market for traders across the globe, regardless of
their time zone.
The forex market is also referred to as foreign exchange, FX or currency market, and traders use
these terms interchangeably.
What makes forex unique against other financial assets is that the speculator is effectively
entering two markets at the same time. This means that FX markets come in “pairs”, and they are
buying one currency and selling another. The easiest way to look at a currency pair is that it
represents a ratio between two markets.
The most traded currency pairs are the FX majors, which include EUR/USD, GBP/USD, AUD/USD, USD/CHF,
USD/JPY and USD/CAD. Yet FX crosses such as GBP/JPY, EUR/GBP and EUR/JPY are also popular pairs due
to their higher levels of volatility.