Forex (short for Foreign Exchange) is the global market where currencies are traded. It is also known as the FX market.
In Forex trading, currencies are traded in pairs, where one currency is exchanged against another.
Examples:
- EUR/USD – Euro vs. US Dollar
- GBP/JPY – British Pound vs. Japanese Yen
Traders can take positions based on their market expectations:
- If they expect a currency’s value to rise, they may open a Buy (Long) position.
- If they expect a currency’s value to fall, they may open a Sell (Short) position.
Market Hours
The Forex market operates 24 hours a day, 5 days a week, across major global trading sessions:
- Sydney
- Tokyo
- London
- New York