Forex

Trading Basics

The global marketplace for trading national currencies against one another. Forex (foreign exchange) is the largest financial market in the world with over $7.5 trillion traded daily.

What Is Forex?

Forex (short for foreign exchange, also abbreviated FX) is the global decentralized market where currencies are traded. Unlike stock exchanges that operate from a central location, forex trading happens electronically over-the-counter (OTC) through a network of banks, brokers, and other financial institutions operating 24 hours a day, five days a week.

Forex Market Size and Participants

According to the Bank for International Settlements (BIS), daily forex turnover exceeded $7.5 trillion in 2022, making it by far the largest financial market. Participants include central banks, commercial banks, hedge funds, multinational corporations, and retail traders. Retail trading accounts for roughly 5-6% of total volume.

Key fact: The forex market is open 24 hours from Sunday 5 PM Eastern (Sydney open) to Friday 5 PM Eastern (New York close). Trading follows the sun through four major sessions: Sydney, Tokyo, London, and New York. The busiest period is the London-New York overlap.

How Retail Forex Trading Works

Retail traders access the forex market through brokers who provide trading platforms (MT4, MT5, cTrader). You trade Currency Pairs using Leverage provided by the broker, putting up a small Margin to control larger positions. Our Forex Trading for Beginners covers the full process of getting started, from choosing a broker to placing your first trade.

Forex Trading for Beginners Is Forex Trading Profitable? Best Time to Trade Forex

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Forex

What Is Forex?

Forex Market Size and Participants

How Retail Forex Trading Works

Related Terms

Currency Pair

Exchange Rate

Major Pair

Leverage

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