The foreign exchange market is where banks, institutions, businesses, and individual traders exchange one currency for another. It operates across global financial centers rather than through one centralized exchange.

Currencies trade in pairs. Buying a pair means buying the base currency while selling the quoted currency. Selling a pair expresses the opposite view. The result depends on how the exchange rate moves, the position size, spread, financing, and any other applicable costs.

Forex activity runs around the clock from Monday in the Asia-Pacific region through Friday in New York. Liquidity and volatility change as Sydney, Tokyo, London, and New York sessions open, overlap, and close.

• Learn base and quote currencies, pips, spreads, margin, and leverage.
• Practice reading bid and ask prices before placing an order.
• Use a defined stop and small position size while learning.
• Check scheduled economic news that can move the pair.