About
Forex
What is Forex?
Forex, also referred to as foreign exchange, FX, or currency trading, is a decentralized
global market where currencies from around the world are traded. It is the largest and most
liquid market globally, with a daily trading volume surpassing $5 trillion on
average.
- In all forex trades, two currencies are involved as you speculate on the value of one
currency relative to another. For example, consider the EUR/USD currency pair, which is the
most heavily traded in the world. In this pair, EUR is the base currency, and USD is the
counter currency. The price quoted on your trading platform represents the value of one euro
in US dollars. You will always see two prices: the buy price and the sell price. The
difference between these prices is known as the spread. When you click on the buy or sell
button, you are either purchasing or selling the base currency in the pair.