Introduction to Forex Trading

Overview of the Forex Market:

The foreign exchange (forex) market is the largest and most liquid financial market in the world. It involves trading currencies against each other to profit from fluctuations in exchange rates.

Major Currency Pairs and Their Significance:

• Major Pairs: Include USD, EUR, JPY, GBP, AUD, CAD, and CHF. These pairs have high liquidity and are commonly traded.
• Minor Pairs: Pairs that do not include the USD but involve other major currencies (e.g., EUR/GBP).
• Exotic Pairs: Involve a major currency and a currency from a smaller or emerging economy (e.g., USD/TRY).

     

Market Participants and Their Roles:

• Retail Traders: Individual traders using online platforms.
• Institutional Traders: Banks, hedge funds, and large financial institutions.
• Central Banks: Influence currency prices through monetary policies.
• Corporations: Engage in forex transactions for international trade and business operations.