The Foreign Exchange Market, which is commonly known as “Forex” or “FX”, is the largest financial market in the world. Forex Trading is referred to as the exchange of two currencies. Thus, Forex can only be traded where there are two currencies involved.

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.

Through the existence of the foreign exchange market, enterprises from one country are able to use their own currency to buy goods or procure services from another country. Forex trading is carried out in all the financial centres around the world and the trading involves a wide range of buyers and sellers of different origin. With such global demand, the market is open round the clock i.e. 24 hours a day for 5 days a week.