What Is Forex Trading? Forex (FX) is a short form of the words foreign [currency] and exchange. Foreign exchange is the process of changing one currency into another for various reasons, usually for commerce, trading, or tourism. According to a 2022 triennial report from the Bank for International Settlements (a global bank for national central banks), the daily global volume for forex trading reached $7.5 trillion in 2022. NOTE: The foreign exchange (forex or FX) market is a global marketplace for exchanging national currencies. Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the world's largest and most liquid asset markets. Currencies trade against each other as exchange rate pairs. For example, EUR/USD is a currency pair for trading the euro against the U.S. dollar. Forex markets exist as spot (cash) and derivatives markets, offering forwards, futures, options, and currency swaps. Some market participants use forex to hedge agains
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