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Basics

Forex

Foreign exchange

Forex is the global market where currencies are bought and sold against each other. Prices are quoted in currency pairs, such as EUR/USD, and they move as supply and demand for each currency change.

Also called: FX, foreign exchange, currency market, currency trading

Hypothetical example

Hypothetically, EUR/USD is quoted at 1.1000: one euro costs 1.1000 US dollars. If the price rises to 1.1050, the euro has strengthened against the dollar; if it falls to 1.0950, it has weakened.

Related terms

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