Lesson 1: What Is Forex? – Your Passport to the $7T Market

Lesson 1: What Is Forex and How Does It Work?

The Forex Market, short for foreign exchange, is where currencies from all around the world are traded. It’s the largest financial market on the planet — with over $6 trillion traded daily.

But what exactly are people trading?

You’re trading currency pairs — like EURO – USD, where one currency is being exchanged for another. When you believe one currency will rise or fall in value compared to another, you can enter a trade to profit from that movement.

Why Does Forex Exist?

• Global commerce: Businesses and governments exchange currencies for trade.
• Speculation: Traders (like you) aim to profit from price movements.
• Hedging: Companies protect themselves against currency risk.

Who Participates?

• Central banks
• Hedge funds
• Retail traders (that’s where you come in)
• International businesses

This is just the surface. Let’s keep going.