WHAT IS FOREX

WHAT IS FOREX

Forex (short form for "foreign exchange") is a global market where currencies are traded.  This market is the largest and most liquid in the world, with a daily trading volume exceeding 6 trillion dollars. The forex market is decentralised, which means there is no central exchange (as there is with stocks). Instead, trades are conducted between participants through computer networks. These participants (or market players) include banks, financial institutions, governments, corporations, and individuals.

(Trading on this market is accessible not only to large financial institutions, but also to individual investors/traders seeking to profit from currency market movements.) The foreign exchange market does not operate based on traditional exchange hours, but is open 24 hours a day, 5 days a week.

It takes place in four major financial centers: London, New York, Tokyo, and Sydney.

Therefore, even if it is night in your country, the market is still active in other parts of the world. You can trade forex using various strategies aimed at predicting the price movements of currency pairs.

Some traders focus on short-term trades, while others prefer holding long-term positions. Simply put, forex is about trading assets, where traders speculate on changes in their value, meaning they estimate which direction the market will move.