Lesson 2: Understanding the Forex Market

Lesson Overview
The forex market is where global currencies are traded. It is the largest and most liquid financial market in the world.

What Is Forex Trading
Forex trading involves exchanging one currency for another in currency pairs such as EUR/USD or GBP/JPY.

How the Forex Market Operates
Forex trading occurs over-the-counter and operates 24 hours a day during the trading week.

Key Drivers of Forex Prices
Interest rates and central bank policies
Economic indicators
Geopolitical events
Market expectations

Key Takeaway
Forex markets move quickly and offer high liquidity, making them attractive but risky for traders.