What is the definition of Forex (FX)?

Forex stands for Foreign Exchange, which refers to the trading of currencies on a market. Forex trading is one of the most popular forms of trading in the world, and as such it is the largest market in the world (nearly $2 trillion traded per day) and one of the most liquid.

There are 2 main reasons why the forex market is so popular to trade:

• Open for longer hours than any other market - 24 hours a day, 5 days a week
• Often tends to follow trends, making trend-trading very popular

Every single currency in the world can be traded and currencies are always traded against each other in pairs. Some of the most commonly traded currency pairs are:

• GBP/USD
• EUR/USD
• USD/JPY
• GBP/EUR
• USD/CHF