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Forex (foreign exchange) is the largest financial market in the world, with a daily trading volume of over $5.5 trillion.
It involves trading currency pairs—buying one currency while selling another.

Due to its size and the number of participants, Forex is considered one of the most transparent markets.
No single entity, including central banks, can fully control price movements.

Forex is a decentralized (OTC) market with no central exchange.
Trading occurs globally between banks, institutions, and individual traders, 24 hours a day, 5 days a week.

Participants include central banks, commercial banks, investment banks, hedge funds, corporations, brokers, and retail traders.

The market opens in Wellington (New Zealand) and moves across major financial centers including Tokyo, London, and New York.
It operates 24 hours a day during weekdays.

Major pairs include:
EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, USD/CAD
These account for the majority of global Forex trading volume.

There are a variety of fundamental and technical aspects that can cause an exchange rate to move. The most notable influences include interest rates, inflation and political stability. Sometimes governments will buy or sell a currency in an effort to influence its value with the view of having a broader effect on the country’s economy. This is known as Central Bank intervention and can have a significant impact on the value of a currency. Given the size and diversity of participants there is not one single factor that can influence the forex market for any significant length of time.

There are a variety of risk management strategies that forex traders can use. The most common form of risk management is the use of stop loss and limit orders. Stop loss orders can be set within the MetaTrader 4 platform and are often used force the closure of a position at a predetermined price in order to limit any potential loss. Limit order work in much the same way as Stop loss orders however they allow a restriction to be placed on the maximum price paid.

Forex Traders use a variety of trading strategies based on technical and fundamental analysis. These days technical trading is becoming increasingly popular and traders are using a variety of technical indicators such as trend lines, support and resistance levels and numerous other methods to identify short to medium term trading opportunities. Some traders choose to use fundamental analysis which revolves around interpreting economic information including news, government reports and sometimes even rumor. Often it is however elements outside of technical and fundamental analysis that have the most dramatic effect on currency prices, this includes events such as Central Bank intervention, interest rate changes, political change or even war.

No, trading forex has never been cheaper and more accessible. Traders can now trade on institutional grade pricing with a deposit as little as $500 and leverage up to 400:1. It is however important to remember that although trading on leverage can maximise profits it can also amplify losses.