What is Forex?
5 min read · Educational content, not financial advice
Forex — short for foreign exchange — is the global marketplace where currencies are bought and sold against one another. When you exchange dollars for euros before a trip, you're participating in the same market that, on an institutional scale, sees trillions of dollars traded every day.
Unlike a stock exchange with a single physical location, Forex trades over the counter through a network of banks, brokers and electronic platforms. It runs nearly 24 hours a day across Sydney, Tokyo, London and New York trading sessions, closing only on weekends.
Retail traders access this market through a broker, who quotes prices and executes orders on their behalf. Every trade involves a pair — you're always buying one currency while simultaneously selling another.
Because of its size and liquidity, Forex offers tight pricing and the ability to enter or exit positions quickly during active sessions — but that same liquidity and use of leverage also means losses can accumulate quickly, which is why risk management is covered early in every serious trading education.