Forex trading, also known as foreign exchange or FX trading, is the process of exchanging one currency for another for various reasons, such as commerce, trading, or tourism. The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. Forex trading is the largest market in the world and operates 24 hours a day, five days a week. Forex traders anticipate changes in currency prices and take trading positions in currency pairs on the foreign exchange market.

Forex trading involves buying and selling currencies against each other as exchange rate pairs, such as EUR/USD, where the first currency listed is the base currency and the second currency is the quote currency. Forex markets exist as spot (cash) and derivatives markets, offering forwards, futures, options, and currency swaps. Forex traders can be self-employed or work for brokerages, hedge funds, and institutional investors such as investment banks, multinational banks and corporations, investment management firms, or central banks.

Forex trading offers many benefits to retail traders, such as high liquidity, low transaction costs, and the ability to trade on margin. However, it also involves significant risks, including the potential for significant losses. To excel in a forex trading career, traders need to be comfortable in a high-stakes environment and prepared to handle appropriate levels of risk in their trading. They also need to have a sound understanding of the markets, be strategic thinkers, and be self-directed learners.