Forex definition

Forex or what is known by the term FX - is an abbreviation for “Foreign Exchange Rate” - which means trading different foreign currencies against each other. Forex is one of the largest global financial markets for trading different currencies. It contributes to trading internationally, and investing via foreign exchange transactions. Daily forex trading volume is estimated at about $6.6 trillion, according to data from the Bank for International Settlements (BIS).

There are many actors in the forex market. Some trade to make profits, others trade cautiously in order to avoid trading risks, and many trade to secure their need for foreign currency to pay utility bills and goods. The main participants in trading are the commercial banks, so currencies are priced according to the banking market. In addition to commercial banks, central banks and multinational corporations, there are risk-loving investors who are always ready to engage in various types of speculation. Among them we find traditional retail traders, and individuals who trade daily/weekly to earn the most money. Many of them monitor economic and political news, statistical releases, and speeches of influential people to decode the future direction of currency prices. Others rely on technical indicators without paying attention to what is happening in the financial world. You can also become a trader and join the business class.