Learn Forex Trading Course Lesson 1: What is Forex

In our first lesson Learn the basics of forex trading. We’ll cover what forex is and how it works, setting you up for success in the world of currency trading.

What is forex

In forex, currencies are quoted in pairs. For example, the EUR/USD currency pair consists of the European Union’s euro and the United States dollar. When you buy or sell a currency pair, you are buying or selling the base currency and selling or buying the quote currency. The base currency is the one on the left, and the quote currency is on the right. The price of a currency pair represents how much of the quoted currency is needed to buy one unit of the base currency.

Forex, or foreign exchange, refers to the global, decentralized market where the world’s currencies trade. The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands every day.

How the forex market Works

Forex operates 24 hours a day, five days a week, and it has no single, centralized market. Instead, it is a network of banks, brokers, and liquidity providers that trade with each other. This decentralization means that forex prices can vary from one broker to another, and they can also be influenced by a range of external factors, such as interest rates, economic data releases, and political events.

Who the Major Forex Players

There are three major players in the forex market:

  • commercial banks
  • central banks
  • retail traders.

Commercial banks

Commercial banks, such as JPMorgan Chase and Deutsche Bank, trade currencies for their own account and for their clients.

Central banks

Central banks, such as the Federal Reserve and the European Central Bank, play a key role in the forex market by setting interest rates and issuing currency.

Retail traders

Retail traders, or individual investors, also participate in the forex market, either through online brokers or by trading through the banks themselves.

How to work in Forex Market

To operate in the forex market, you need a broker. There are many brokers to choose from, and it’s important to do your research before selecting one. Some things to consider when choosing a forex broker include the broker’s regulatory status, the types of accounts they offer, the trading platforms they provide, and the spreads and commissions they charge. It’s also a good idea to read reviews from other traders and to try out a broker’s demo account before opening a live account. You may check this top broker list here


Overall, forex is a complex and dynamic market that offers opportunities for traders of all levels. By understanding how it works, choosing the right broker, and staying informed about market conditions, you can navigate the forex market successfully.

In the text article, we will discuss the Advantage and risks of forex Trading

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