What is forex market?

The foreign exchange market, often referred to as the forex or FX market, is the global decentralized or
over-the-counter (OTC) market for trading currencies. It's the largest and most liquid financial market in
the world, with an average daily trading volume exceeding trillions of dollars.

In the forex market, currencies are traded in pairs, where one currency is exchanged for another at an
agreed-upon rate. The most commonly traded currencies include the US dollar (USD), euro (EUR),
Japanese yen (JPY), British pound (GBP), Swiss franc (CHF), Canadian dollar (CAD), Australian dollar
(AUD), and New Zealand dollar (NZD).

Participants in the forex market include central banks, commercial banks, financial institutions,
corporations, hedge funds, investment firms, and retail traders. Transactions in the forex market can be
for various purposes, including hedging against currency risk, facilitating international trade and
investment, speculation on currency fluctuations, and arbitrage opportunities.

The forex market operates 24 hours a day, five days a week, across major financial centers worldwide,
including London, New York, Tokyo, Hong Kong, Singapore, Sydney, and others. This continuous
operation allows traders to react to news and events that occur globally and affect currency values.

Key features of the forex market include high liquidity, low transaction costs, leverage opportunities,
and the ability to trade in both rising and falling markets. However, due to its high volatility and
leverage, trading forex carries a significant risk of loss, and traders should approach it with caution and
proper risk management strategies.