Forex (Foreign Exchange)
Forex is the market for trading currencies, the largest financial market in the world with $9.6 trillion traded daily in 2025.
Forex is the global currency market, the largest financial market in the world at $9.6 trillion traded daily in April 2025. It trades nearly 24 hours a day with no central exchange.
Forex (foreign exchange) is the global market for trading currencies, where every transaction buys one currency and sells another. It is the largest financial market in the world, with daily turnover of $9.6 trillion in April 2025 per the BIS Triennial Survey, more than all global stock markets combined. It trades nearly 24 hours a day, five days a week, across London, New York, Tokyo and Sydney sessions, and it has no central exchange. Most retail participation happens through brokers offering CFDs or spread betting.
How It Works
- Every trade buys one currency and sells another
- $9.6 trillion daily turnover, April 2025 (BIS Triennial Survey)
- London, New York, Tokyo and Sydney sessions overlap for liquidity
Trading Tips
Trade majors in the London-New York overlap for the best liquidity
The market is 24 hours only in theory - thin sessions behave differently
Retail forex is mostly CFDs, so broker regulation and costs decide the experience
Forex (Foreign Exchange) Example
Say EUR/USD quotes 1.0850 / 1.0852 and you buy. You now own euros funded by dollars you sold short. If the pair rises to 1.0950, your euros buy back more dollars than you sold, and the difference minus costs is your profit.
How Traders Use Forex (Foreign Exchange)
Start where the costs are lowest and the data is richest: major pairs during the London-New York overlap, with the economic calendar open beside the chart. Most beginners lose to spreads and surprise news, not to bad chart reading.
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.