What Do Forex Traders Trade?

Forex trading, short for foreign exchange trading, involves the exchange of currencies in the global market. This financial arena is the largest and most liquid market in the world, with a daily trading volume exceeding $6 trillion. Forex traders engage in the buying and selling of various currency pairs, seeking to profit from fluctuations in exchange rates. These currency pairs include major currencies like the US Dollar (USD), Euro (EUR), Japanese Yen (JPY), and British Pound (GBP), as well as minor and exotic currencies. The essence of forex trading is to speculate on the price movement of one currency relative to another, and it operates around the clock, five days a week, enabling traders to enter and exit positions at their convenience. In this comprehensive article, we will delve into the intricacies of what forex traders trade, the mechanisms of trading, strategies, and key factors influencing the market.