Back to Glossary
General TradingF

Forex (FX)

Forex (FX) is the global marketplace for exchanging national currencies against one another. It is the largest financial market in the world by trading volume and operates 24 hours a day through a network of banks, brokers, and electronic trading platforms.

Example

The forex trader bought EUR/USD at 1.0850 during the London session, anticipating the euro would strengthen after the ECB raised interest rates, and closed the trade at 1.0920 for a 70-pip profit.