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Forex Basics

What Is Forex Trading?

EUR/USD

Forex (foreign exchange) trading means buying one currency while selling another, at the same time. Currencies are always quoted in pairs, like EUR/USD or GBP/JPY, because you're measuring the value of one against the other.

The forex market is the largest financial market in the world, trading around the clock across different global sessions. Unlike a stock exchange, there's no single central location — trades happen electronically between banks, brokers, and traders worldwide.

Why do prices move? Currency values shift based on interest rates, economic data, political events, and overall market sentiment. A trader's job is to try to anticipate these shifts and profit from the price movement between the two currencies in a pair.

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