The word FOREX is an acronym for Foreign Exchange Market and means the foreign exchange market. With daily transactions of over $5.09 trillion, the forex market is the largest financial market in the world. The companies that provide trading and speculation on currency pairs are called forex companies. As it is the largest and most active financial trading market in the world, it is also the most liquid, making it easy for new traders to get involved in currency trading and to enter and exit trades. In addition, individuals can exchange currencies for relatively little money (less than 1 pip!), especially for the more liquid pairs.
This means that there are many opportunities available for traders to make money from both positive and negative currency trading movements due to the high volatility in the forex market. Any investor who wants to start trading in the forex market should understand how it works and be aware of the basic terminology used there. Starting with a demo trading account is a good way to begin your forex education and understand how to trade the financial markets. Currency pairs, spreads and points, margin, leverage, contract/lot size, trading platforms, CFDs, and swap are among the most important forex basics.