Foreign Exchange trading, commonly known as Forex or FX trading, has grown in popularity among laypeople in recent years as a result of the proliferation of online brokers and technological advancements in online trading platforms. It is no surprise that the forex market is the world's largest traded market, with a daily trading volume of $5 trillion USD. It has tremendous liquidity, non-stop opening hours 5 days a week, and great chances.
When you trade Forex, you are purchasing one currency with another. As a result, the FX trader trades currency pairs rather than individual currencies. Consider the EURUSD: when you buy the pair, you are purchasing EUR while selling USD. When you sell the pair, you are buying USD with (selling) EUR.
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