Forex Definition

The foreign exchange market, as known as forex market, is a global marketplace where different currencies are traded. Given that daily forex trading can reach $5 trillion USD, it significantly eclipses the stock market. The forex market is open for trading round-the-clock from Sunday night to Friday night because it is not headquartered in a single location or exchange.

How to Trade the Forex

The traded instruments in forex are in pairs – currency pairs. A currency pair comprises a base currency and a quote currency. The first listed currency in the pair is called the base currency, and the second one is the quote currency.

As contracts for difference (CFDs), our currency pairings are accessible for trading. When trading forex, you make bets on whether the value of one currency will increase or decrease relative to another.