What currency does a forex investor trade?

Investors trade forex in pairs, which list the base currency first and the quote currency second. For example, if someone trades the JPY/USD, the Japanese yen is the base currency, and the US dollar is the quote currency. Each forex trade involves a pair of currencies.

What is forex market & how does it work?

Forex (FX) market is a global electronic network for currency trading. Formerly limited to governments and financial institutions, individuals can now directly buy and sell currencies on forex. In the forex market, a profit or loss results from the difference in the price at which the trader bought and sold a currency pair.

What is a foreign exchange (FX) market?

The foreign exchange (forex or FX) market is a global marketplace for exchanging national currencies. Because of the worldwide reach of trade, commerce, and finance, forex markets tend to be the world's largest and most liquid asset markets. Currencies trade against each other as exchange rate pairs.

How do currencies trade against each other?

Currencies trade against each other as exchange rate pairs. For example, EUR/USD is a currency pair for trading the euro against the U.S. dollar. Forex markets exist as spot (cash) and derivatives markets, offering forwards, futures, options, and currency swaps.