What does Forex mean?
Forex is the largest financial market in the world in terms of both size and liquidity. To give you a general idea of the size, an average of $5 trillion is traded globally each day. No stock market in the world trades such a huge amount on a daily basis.
The idea of Forex is fairly simple really; it’s the exchange of one country’s currency for the currency of another country.
With Forex you’re essentially buying one currency, and selling the other and so naturally Forex (also called FX) is traded in pairs such the British pound and the US Dollar [GBP/USD].
There are some “FX pairs” that are more popular than others, Euro vs. US Dollar [EUR/USD], British Pound vs. US Dollar [GBP/USD], US Dollar vs. Japanese yen [USD/JPY], and US Dollar vs. Swiss Franc [USD/CHF]. These four popular currency pairs are often referred to as “the Majors”
At almost any point during the day, there is always a financial center somewhere in the world open for business. The FX market is open 24 hours a day and only closes on weekends between 22:00 (GMT) on Friday and 22:00 (GMT) on Sunday.
The Foreign Exchange market has no set physical location. It is known as an OTC [Over-the-Counter] markets in which all trades are processed electronically 24 hours a day between banks around the world.
Forex, unlike other financial markets, does not have an exchange center so you can pretty much trade Forex anywhere in the world, at any point in time but there are some peak trading session times in each region.
In short you have been active in forex every time you went abroad and used another currency which you bought with your domestic currency , trading just is taking advantage of the differences in value of these currency set against each other which continuously occurs in the Global economy