Forex is a common abbreviation of ‘foreign exchange’ and refers to the overall market in which investors are able to buy and sell international currency. It is also referred to as FX trading.
In the forex market, traders invest in exchange rate pairs to trade one currency against another. You sell one currency to buy another, which is what makes the pair.
For example, opening a BUY position EUR/USD means that the trader thinks that the EUR will become stronger against the USD. This isn’t very different from when you exchange your currency at the airport when traveling overseas.
Although forex means ‘foreign exchange’, there is no specific marketplace in which currencies are traded. The forex market is open 24 hours a day, five days a week, and has daily and weekend breaks that you can check on our market hours page.
You can find more information about forex here.
You can check all the currencies we offer at eToro here.