What is Forex Trading?

T he word ‘forex’, shortened to fx in forex trading, is an acronym for Foreign Exchange. It refers to the commercial process of buying and selling one currency for another and is one of the most heavily traded markets in the world. This is because individuals, businesses, and countries are constantly exchanging money for goods and services with others that use a currency different from theirs. Currencies in this market are always traded in pairs. Forex trading is carried out in a foreign exchange market, a physical or online marketplace where currency exchange is the primary trade. While there is no single international central forex trading marketplace, all currency trades are transacted via a computer network between traders around the world and standard currency prices are set on-the-go based on demand and supply. The forex trading marketplace is open for five and half days a week in the world’s major financial capitals of the world. Anyone can start trading currencies with the aim of making a profit – right from their homes. The primary objective would be to buy a currency pair at a low price and sell at a higher price to make a profit. To stand a better chance of making a profit, beginners in forex trading are advised to take a course in the trade or read as much as they can about the money market.