What is forex trading?

Forex trading is the buying and selling of global currencies. It’s how individuals, businesses, central banks and governments pay for goods and services in other economies. Whenever you buy a product in another currency, or exchange cash to go on holiday, you’re trading forex.

How are forex prices determined?

Instead of trading via a central exchange such as the New York Stock Exchange or London Stock Exchange, forex prices are determined by interbank trading – the buying and selling of currencies between banks constantly, all over the world. The currency market is open 24 hours a day during market hours.

What currencies are used in forex trading?

Other major currencies, in order of popularity, are: the Japanese yen (JPY), the British pound (GBP), the Australian dollar (AUD), the Canadian dollar (CAD), the Swiss franc (CHF) and the New Zealand dollar (NZD). All forex trading is expressed as a combination of the two currencies being exchanged.

Who regulates forex trading in the UK?

The Financial Conduct Authority (FCA) monitors and regulates forex trades in the United Kingdom. Which Currencies Can I Trade in? Currencies with high liquidity have a ready market and exhibit smooth and predictable price action in response to external events. The U.S. dollar is the most traded currency in the world.