At its core, forex refers to the decentralized global marketplace where currencies are bought and sold. It operates 24 hours a day, five days a week, allowing for continuous trading across different time zones. The primary players in the forex market include governments, central banks, financial institutions, corporations, and individual traders.
Types of currency pairs
The heart of forex trading lies in currency pairs, where one currency is exchanged for another. There are three main types of currency pairs: major pairs, minor pairs, and exotic pairs.