What is Forex?

The foreign exchange market is the world's largest and most liquid financial market, where currencies like the US Dollar (USD), Euro (EUR), and British Pound (GBP) are traded in pairs (e.g., EUR/USD). It facilitates international trade and investment by enabling currency conversion. Major trading centers include London, New York, and Tokyo.

Forex trading is often done with significant leverage, meaning traders can control large positions with a relatively small amount of capital. While this can magnify profits, it also dramatically increases the risk of substantial losses. The market is influenced by macroeconomic factors, central bank policies, and geopolitical events.