What is Forex
(Foreign Exchange) Trading?

Forex refers to the global currency market, a decentralized marketplace where buyers and sellers exchange 24 hours a day 5 days a week. The forex market is the largest market in the world where volumes exceed $5 trillion a day.

The objective of currency trading is to predict one currency will increase or decrease against the other. An example of a pair you might trade is the Australian Dollar Vs the Canadian Dollar or AUD/CAD this and other foreign currencies are exchanged at floating rates by financial institutions, companies, and individuals. Prices of currency pairs can be influenced by several factors, examples of these factors can be geopolitical events, news releases or the economic outlook which may be interpreted postively or negatively by traders in the market.

The forex market allows traders to buy (go long) or sell (go short), making a profit or loss when the price moves, without physically purchasing the underlying currency.

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