Forex, short for Foreign Exchange, is the global marketplace where currencies are bought and sold. Unlike a traditional stock exchange, Forex operates through a worldwide network of banks, financial institutions, brokers, and traders.
When trading Forex, one currency is exchanged for another. This is why currencies are always represented in pairs, such as EUR/USD or GBP/USD.
What You Will Learn:
- What Forex means
- How the Forex market works
- Why currencies are traded in pairs
- Who participates in the Forex market
- Basic Forex trading terminology
Key Takeaways:
Forex is a global currency market where one currency is exchanged against another. Understanding the basic structure of this market is the first step toward becoming a knowledgeable trader.