What is Forex?
Forex stands for Foreign Exchange Market. It is the largest and most liquid financial market in the world, where currencies are traded against each other. The daily trading volume in Forex reaches trillions of dollars, making it the most popular market for traders and investors.
Forex Market Features:
✅ The world’s largest financial market: The daily trading volume of Forex is more than 7 trillion dollars.
✅ 24-hour: This market is active 24 hours a day, Monday through Friday.
✅ Decentralized trading: Forex is a decentralized market in which banks, financial institutions, multinational companies, traders, and speculators participate.
✅ High liquidity: Due to the high trading volume, there are always buyers and sellers for major currency pairs.
✅ Leverage: Forex brokers allow traders to trade with multiples of their own capital.
Forex Trading Basics
In this market, currencies are traded in currency pairs, such as:
• EUR/USD (Euro to Dollar)
• GBP/USD (Pound to Dollar)
• USD/JPY (Dollar to Japanese Yen)
Each currency pair has a base currency (first currency) and a counter currency (second currency). The exchange rate indicates the value of the base currency against the counter currency.
Who operates in the Forex market?
✔️ Central banks
✔️ Commercial and multinational companies
✔️ Brokers and financial institutions
✔️ Retail traders (individual traders)
Is Forex profitable?
Forex is a risky and volatile market that can bring big profits or heavy losses. Successful traders have specific strategies and use money management and risk management.
⚠️ Warning: Forex trading is high-risk and is not recommended for beginners without proper training and practice.