Forex or Foreign Exchange refers to the buying and selling of stocks. It is the most important trading market in the world. The biggest companies, businessmen, and countries participate in this market. Everyone can participate in Foreign exchange trading, if you are on a vacation and you’ll exchange your dollars to any currency, you already participated in the market. The demand for the currency will dictate how strong or how weak that currency is. You can see in this link how U.S dollars and Stock Market are correlated.

Currency is always trades in pairs. You can’t trade Euros to Euros. It is always against another currency.

Forex uses symbols for currencies. EU for Euro, USD for US dollars, CAD for Canadian Dollar so on and so forth. Each Forex pair has an equivalent market price. For example, if the pair price is 1.3 EUR/USD, it takes 1.3 USD to buy …