Introduction

Forex, short for Foreign Exchange, is the global marketplace where currencies are bought and sold against one another. It is the largest and most liquid financial market in the world, with over $7 trillion traded every single day — far exceeding stock markets.

Unlike stock markets, Forex has no central exchange. It operates 24 hours a day, 5 days a week across major financial hubs — London, New York, Tokyo, and Sydney. This means you can trade at almost any time of day or night.

In Forex trading, currencies are always traded in pairs. For example, EUR/USD means you are buying Euros while selling US Dollars. The first currency is called the base currency and the second is the quote currency. The price tells you how much of the quote currency you need to buy one unit of the base currency.

The Forex market is driven by factors like interest rates, inflation, political stability, and economic performance of countries. Traders analyse these factors using two main approaches — Fundamental Analysis and Technical Analysis — to predict currency price movements and make trading decisions.

Forex trading offers opportunities for profit in both rising and falling markets. When you expect a currency to rise you go long (buy), and when you expect it to fall you go short (sell). This flexibility makes Forex attractive to traders worldwide.