Forex (Foreign Exchange)
The global market for trading currencies. The world's largest financial market.
Definition
Forex (FX) is the global decentralized market for trading currencies. It's the world's largest financial market with daily volume exceeding $7.5 trillion. Forex operates 24/5 across major financial centers worldwide.
How It Works
- Currencies traded in pairs (EUR/USD, GBP/JPY)
- Over-the-counter (OTC) market - no central exchange
- Open 24 hours, 5 days a week
- Sessions: Sydney, Tokyo, London, New York
Trading Tips
1
Most liquid during London-New York overlap
2
Major news releases cause volatility
3
Start with major pairs for tighter spreads
Related Terms
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