What Is Forex? Meaning & Example
Definition
Forex, short for foreign exchange, is the global market for trading currencies. It is the largest financial market in the world by trading volume and runs around the clock on weekdays.
Related terms
A forex pair quotes the value of one currency in terms of another. The first currency is the base and the second is the quote currency.
Exchange RateAn exchange rate is the price of one currency in terms of another. Rates change constantly based on trade, interest rates, inflation and sentiment.
PipA pip is a standard unit of price movement in forex, usually the fourth decimal place for most pairs and the second for yen pairs. Pips are used to measure gains, losses and spreads.
What is Forex?
Forex, short for foreign exchange, is the global market for trading currencies. It is the largest financial market in the world by trading volume and runs around the clock on weekdays.
Can you give an example of Forex?
A business converting dollars to euros to pay a supplier is taking part in the forex market.