Forex

Forex, short for “foreign exchange,” refers to the global marketplace for trading national currencies against one another. It is the largest and most liquid financial market in the world, where currencies are bought and sold. Forex operates 24 hours a day, five days a week, allowing traders and investors to engage in currency transactions at any time.

The forex market functions through a decentralized network of banks, financial institutions, corporations, and individual traders, rather than a centralized exchange. Currency trading typically involves exchanging one currency for another, known as a currency pair, such as EUR/USD (euro and US dollar).

Forex trading is influenced by a variety of factors, including interest rates, economic indicators, geopolitical events, and market sentiment. Participants in this market include banks, brokers, retail traders, and multinational corporations that engage in currency hedging or speculation.

The main goal in forex trading is to profit from fluctuations in currency exchange rates. Given its size and complexity, the forex market can offer significant opportunities for profitability, but it also carries substantial risks.