Forex for Beginners – What is Forex?
Here you’ll find forex explained in simple terms. If you’re new to forex trading, we’ll take you
through the basics of forex pricing and placing your first forex trades. ‘Forex’ is short for
foreign exchange, also known as FX or the currency market. It is the world’s largest form of
exchange, trading around $4 trillion every day, and it is open to major institutions and
individual investors alike.
The aim of Forex trading is simple. Just like any other form of speculation, you want to buy a currency at one price and sell it at
higher price (or sell a currency at one price and buy it at a lower price) in order to make a profit. Some confusion can arise as
the price of one currency is always, of course, determined in another currency. For instance, the price of one British pound
could be measured as, say, two US dollars, if the exchange rate between GBP and USD is 2 exactly. In forex trading terms
this value for the British pound would be represented as a price of 2.0000 for the forex pair GBP/USD.