What is Forex

What is Forex

Forex is the abbreviation for foreign exchange. It is also sometimes shortened again to just FX. Foreign exchange, forex, FX and currency all refer to the $1.6 trillion per day market where currencies are exchanged for each other.

The forex market’s size dwarfs all of the stock and commodity markets combined.

The forex markets are a true electronic or over-the-counter exchange.

There is no physical or central forex exchange location. The forex market is comprised of a global network of banks, corporations and individuals who are buying and selling currencies 24 hours a day, except on weekends.

Forex trading follows the sun around the globe. The most active exchange centers are in Tokyo, Singapore, London and New York. When Asian trading session ends the European session begins and when the European session ends the North American session begins and so on.

Which currencies are the most actively traded?

The United States Dollar (USD) is the most actively traded currency. The (USD) is then followed by the Eurocurrency (EUR), the Japanese Yen (JPY), the British Sterling (GBP), and the Swiss Franc (CHF) and the Australian Dollar (AUD). The most actively traded currencies are often referred to as the majors.