1.1 What is Forex Trading?

What is Forex Trading?

Forex trading, also known as foreign exchange or currency trading, involves buying and selling currencies to profit from changes in their value. It is the largest financial market in the world, with a daily trading volume exceeding $6 trillion. Unlike stock markets, forex operates 24/7, allowing traders to trade currencies at any time.

Key Point: Forex trading always involves currency pairs, where one currency is exchanged for another.

Example: If you expect the Euro (EUR) to strengthen against the US Dollar (USD), you would "buy" the EUR/USD pair. If the Euro increases in value, you can sell it at a profit.