What Is Forex Trading. Foreign exchange trading—also commonly called forex trading or FX—is the global market for exchanging foreign currencies. The forex market is the largest financial market.
Forex (FX) is a portmanteau of the words foreign [currency] and exchange. Forex trading allows individuals, businesses, and financial institutions to speculate on the value of one currency relative to. It's how individuals, businesses, central banks and governments pay for goods and services in other economies.
Central banks are also involved in the forex market, buying and selling currencies in order to push the value of their native.
The forex market is the largest, most liquid market in the world, with average traded values that can be trillions of dollars.
Whenever you buy a product in another currency, or exchange cash to go on holiday, you're trading forex. Learning forex trading involves getting to know a small amount of new terminology that describes the price of currency pairs. His videos are fun to watch.