What is forex?

Forex, short for foreign exchange, refers to the global decentralized market where currencies are traded. It is the largest and most liquid financial market in the world, with an average daily trading volume exceeding $6 trillion. Forex trading involves buying one currency while simultaneously selling another, with the aim of profiting from the fluctuations in exchange rates between the two currencies. Traders speculate on the value of different currencies, taking advantage of the constantly changing exchange rates. Forex trading is conducted electronically over-the-counter (OTC), meaning there is no centralized exchange, and it operates 24 hours a day, five days a week.