Essential

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

Most liquid during London-New York overlap

Major news releases cause volatility

Start with major pairs for tighter spreads

Related Terms

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