Forex trading, also known as foreign exchange trading or FX trading, is the process of buying and selling currencies in the global marketplace. The forex market is the largest and most liquid financial market in the world, with a daily trading volume exceeding $6 trillion. In forex trading, currencies are traded in pairs, such as EUR/USD, GBP/JPY, or USD/JPY. Traders speculate on the exchange rate between two currencies, aiming to profit from price movements. The most commonly traded pairs are called major currency pairs, which include the US dollar (USD), euro (EUR), British pound (GBP), and Japanese yen (JPY). While the forex market offers opportunities, it also carries risk. Successful traders use proper risk management strategies such as stop loss orders, position sizing, and diversification to protect their capital.
