What is Forex?

Forex is short for foreign exchange. It simply means changing one currency into another, like when you travel and exchange your local money for another country’s currency.

What is the Forex Market?

The Forex Market is a global online marketplace where people buy and sell currencies like the US Dollar, Euro, British Pound, etc.

• It’s the largest and most liquid financial market in the world, bigger than the stock market. (over $6 trillion traded daily.)
• It’s open 24 hours a day, 5 days a week.
• You can trade currencies like the US Dollar (USD), Euro (EUR), British Pound (GBP), Japanese Yen (JPY), and many more.
• Currencies are traded in pairs (like EUR/USD, GBP/JPY). Forex Traders make money from currency prices going up or down. So, they’re betting on one currency getting stronger or weaker than another.

How Do Forex Traders Make Money?

Forex traders make money by buying a currency at a lower price and selling it at a higher price (or vice versa), profiting from the changes in exchange rates between currency pairs.

Example:

If you believe the Euro will become stronger than the US Dollar, you might buy EUR/USD. If you’re right and the Euro gains value, you can sell it back and make a profit.