What is Foreign Exchange (Forex/FX)?

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The **Foreign Exchange (Forex or FX) market** is a global, decentralized financial market for the trading of currencies, determining the foreign exchange rate for every currency pair. It is the largest and most liquid financial market in the world, with an average daily trading volume exceeding $7.5 trillion, facilitating international trade, investment, and tourism.

Foreign Exchange (Forex/FX)

What is Foreign Exchange (Forex/FX)?

What is the fundamental structure of the Forex market, and how does it achieve its massive daily trading volume?

Who are the primary participants in the Foreign Exchange market, and what are their distinct motivations for trading currencies?

What are the key trading strategies, such as arbitrage and hedging, employed by participants in the Foreign Exchange market?

How is the global Forex market regulated, and what are the primary risks associated with Foreign Exchange trading, particularly concerning leverage?

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