Forex trading, also known as foreign exchange trading or currency trading, refers to the decentralized global market where individuals, institutions, banks, and governments trade currencies against one another. The forex market is the largest and most liquid financial market in the world, with an average daily trading volume of over $6 trillion.

The primary objective of forex trading is to profit from the fluctuations in exchange rates between different currencies. Traders buy one currency while simultaneously selling another, speculating on the potential increase or decrease in the value of the currency pair. For example, if a trader believes the Euro (EUR) will strengthen against the US Dollar (USD), they would buy EUR/USD, hoping to sell it at a higher price in the future.

Traders use various strategies, such as technical analysis (based on historical price charts and patterns) and fundamental analysis (based on economic news and data), to make trading decisions.

Due to its vast size and constant activity, the forex market tends to have high liquidity, meaning there are plenty of buyers and sellers, making it easier to enter and exit trades.The forex market operates 24 hours a day, five days a week, due to the involvement of different time zones worldwide.

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