What Is Forex Trading?

Forex trading is the buying and selling of currencies with the aim of making a profit. As the largest and most sought-after financial market in the world, foreign exchange offers ample opportunities for those who want to experience the highest volumes and liquidity. As a global market, Forex trading is conducted all over the world with the largest market located in major financial centres including New York, London, Tokyo and Hong Kong. The Forex market is vast and consists of numerous entities including banks, financial or business institutions and brokers - all speculating on the movement of currency pairs.

Currencies are traded in pairs. The first currency listed in a Forex pair is called the base currency while the second currency is called the quote currency. The Euro/US Dollar is the most traded currency pair in the world. Forex trading is becoming increasingly popular with retail and hobbyist traders owing to its accessibility and suitability for beginners.

The foreign exchange market is a huge industry that is estimated to have a value of 5 trillion dollars each day. Currency trading is one of the most profitable and attractive markets in the world. Both beginners and experienced traders can benefit from the probability of currency trading by finding the proper currencies to trade. Foreign exchange trading is a popular investment option because of the impact currency prices have on lives around the globe. What makes it flexible is that it has no central market and round-the-clock availability from Monday to Friday.