Forex trading is the process of buying and selling of currencies to generate a profit from fluctuations in exchange rates. The word “forex” is derived from the term ‘foreign exchange,’ which means the process of converting one currency into another. People start forex trading for various reasons, such as investment, speculation, or hedging international payments. Over the years, forex trading has grown into a global business that attracts both individual traders and financial institutions.
The foreign exchange (forex) market is a 24-hour trading platform where currencies are traded continuously, from Monday to Friday, 24 hours a day. It is the largest financial market in the world, with an estimated daily turnover of over $7 trillion. The major participants of the global forex markets are the large international banks, huge investment firms, hedge funds, etc. The retail traders access the forex market through online forex brokers.
There is no central exchange for forex trading, but major financial centers like London, New York, Tokyo, and Sydney dominate trading activity. Their overlapping time zones keep the market active around the clock, allowing traders from different regions to buy and sell currencies at any time of the day.
