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Forex, also known as foreign exchange or FX trading, is the process of buying and selling different currencies on the global market. It’s one of the largest markets in the world, with a daily turnover of around $5 trillion. Forex trading is perfect for people looking to profit from fluctuations in currency prices. It’s also a great way to diversify your investment portfolio.
The forex market has two main players: institutional and retail investors. Institutional investors include investment banks, central banks, hedge funds, and pension funds. They trade forex for large sums of money and have a lot of influence on the market. Retail investors are individuals who trade for themselves. They make up a small chunk of the market but can still significantly impact prices.