Home / Uncategorized / What is Forex?

What is Forex?

What is Forex?

The foreign exchange market – also known as forex or the FX market – is the world’s most traded market, with turnover of $5.1 trillion per day.*

To put this into perspective, the U.S. stock market trades around $257 billion a day; quite a large sum, but only a fraction of what forex trades.

Forex is traded 24 hours a day, 5 days a week across by banks, institutions and individual traders worldwide. Unlike other financial markets, there is no centralized marketplace for forex, currencies trade over the counter in whatever market is open at that time.

How FX Trading works

Trading forex involves the buying of one currency and simultaneous selling of another. In forex, traders attempt to profit by buying and selling currencies by actively speculating on the direction currencies are likely to take in the future.

World’s Major Currencies

COUNTRYSYMBOLCOUNTRYSYMBOL
United StatesUSDSwitzerlandCHF
EurozoneEURCanadaCAD
JapanJPYAustraliaAUD
Great BritainGBPNew ZealandNZD

Want to know more about how to trade forex?

Our free Let’s Get to Know Forex guide will cover how to get started, help you make your first trades and outline how to create a long-term trading plan for long-term success.