Forex, or foreign exchange, is the global market for trading currencies. It operates 24 hours a day, five days a week, and is the most liquid financial market in the world. Currency pairs like EUR/USD, GBP/JPY, and USD/INR are traded by institutions, governments, and individual traders. Forex trading allows for high leverage, enabling traders to control large positions with a relatively small capital. While this increases potential profit, it also magnifies risk. Traders rely on technical analysis, economic indicators, and geopolitical events to make informed decisions. Forex is ideal for those seeking high liquidity and frequent trading opportunities.
Example:
A trader buys GBP/USD expecting the British pound to strengthen against the dollar.
