- Forex Trading is trading currencies from different countries against each other. Forex is acronym of Foreign Exchange.
- The system of global trading in foreign currency is known as the Foreign Exchange Market, Forex, or just FX. Over the last three decades the foreign exchange market has become the world's largest financial market, it trades over $1.5 trillion USD daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Forex is part of the bank to bank currency market known as the 24-hour Interbank market.
- For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States the currency in circulation is called the US Dollar (USD). An example of a forex trade is to buy the Euro while simultaneously selling US Dollar. This is called going long on the EUR/USD.