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Forex trading, also known as foreign exchange trading or currency trading, is the process of exchanging one currency for another in a decentralized global market. It is the largest financial market in the world, with a daily trading volume exceeding $6 trillion. Open 24 hours a day, five days a week, the forex market operates across major financial hubs such as London, New York, Tokyo, and Sydney.Traders engage in forex trading to profit from fluctuations in currency values. These fluctuations are influenced by a variety of factors, including interest rates, economic indicators, geopolitical events, and market sentiment. For instance, if a trader believes the euro will strengthen against the U.S. dollar, they might buy EUR/USD. If their prediction is correct, they profit from the difference in exchange rates.Forex trading can be executed through spot markets, futures, options, or exchange-traded funds (ETFs).

Forex trading, or foreign exchange trading, involves exchanging one currency for another in a global marketplace. It is the largest financial market, with a daily trading volume exceeding $6 trillion. Operating 24 hours a day, five days a week, the forex market spans major financial centers worldwide, including London, New York, Tokyo, and Sydney. The goal of forex trading is to profit from fluctuations in currency exchange rates. These fluctuations result from economic factors, interest rate changes, geopolitical events, and market sentiment. Traders speculate on whether a currency will strengthen or weaken relative to another. For instance, buying EUR/USD means betting that the euro will rise against the dollar.Forex trading is conducted through various instruments, including spot trading, futures, options, and exchange-traded funds (ETFs).