How Does Forex Work

Forex, or foreign exchange, is the process of exchanging one currency for another

For example, you might exchange U.S. dollars for euros

The foreign exchange market is a global decentralized market for the trading of currencies

This means that currencies are traded around the world, 24 hours a day

It is the largest market in the world

with an average daily trading volume of more than $5 trillion

The main participants in the forex market are large banks, central banks, commercial companies, hedge funds, and investment management firms