Plain-English definitions, reviewed by an independent investor
Forex
Forex is the global market for trading currencies in pairs, where you buy one money with another.
Forex is the global market for trading currencies in pairs, where you buy one money with another.
(Quoted as a pair, e.g. EUR/USD)
Why it matters
It is the most liquid market on earth and the channel for global macro bets.
Common confusion
Leverage is huge and losses can exceed deposits; most retail traders struggle.
Frequently Asked Questions
What is a pip?
The smallest price move in a currency pair, usually the fourth decimal.
Why is forex risky?
Extreme leverage and 24-hour moves can wipe accounts fast.