What is Forex Market?
The Forex Market (Foreign Exchange Market) is the world’s largest and most liquid financial market, where currencies are bought and sold. It’s a global decentralized market that operates 24 hours a day, five days a week.
In the forex market, currencies are traded in pairs — for example:
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EUR/USD (Euro vs. US Dollar)
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GBP/JPY (British Pound vs. Japanese Yen)
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USD/INR (US Dollar vs. Indian Rupee)
When you trade forex, you are buying one currency and selling another at the same time. The goal is to profit from changes in the exchange rates between currencies. For example, if you think the Euro will rise against the Dollar, you can buy EUR/USD.
Forex trading happens mostly through brokers on platforms like MetaTrader 4 (MT4) or MetaTrader 5 (MT5). Big participants in this market include banks, governments, financial institutions, and individual traders.
Unlike the stock market, forex is open 24 hours — divided into Asian, European, and American trading sessions, which allows for trading anytime.
💡 Why People Trade Forex?
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High liquidity
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Leverage opportunities
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Low entry cost
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Flexibility of time
However, forex trading also involves high risk, especially when using leverage. So, proper knowledge, analysis, and risk management are crucial.