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Forex (FX) — definition & meaning

The global market for trading one currency against another.

Forex is the market where currencies are traded in pairs, such as EUR/USD. You are always buying one currency and selling another at the same time.

It is the largest and most liquid market in the world, open 24 hours on weekdays. Retail traders usually access it through leveraged products, which makes it both accessible and risky.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Currency pair
Two currencies quoted together, showing the price of one in the other.
Pip
The smallest standard price move in most currency pairs.
Leverage
Borrowed exposure that lets you control a large position with a small deposit.
CFD (contract for difference)
A leveraged contract to exchange the price change of an asset, without owning it.
Base currency
The first currency in a pair — the one being priced.
Spread betting
A leveraged way to bet a stake per point on a market's direction.

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