What is Forex trading?
Forex trading, or foreign exchange trading, involves buying and selling currencies on the foreign exchange market with the goal of making a profit. The forex market is the largest and most liquid financial market in the world, where trillions of dollars are traded daily. ### Key Aspects of Forex Trading: 1. **Currency Pairs**: Currencies are traded in pairs (e.g., EUR/USD, GBP/JPY). The first currency in the pair is the base currency, and the second is the quote currency. When you buy a currency pair, you are buying the base currency and selling the quote currency. 4051218 2. **Exchange Rates**: The exchange rate between two currencies is the price of one currency in terms of the other. These rates fluctuate due to factors such as economic news, interest rates, and geopolitical events. 3. **Leverage**: Forex trading often involves leverage, which allows traders to control larger positions with a smaller amount of capital. While this can amplify profits, it also increases the risk ...