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What is Foreign Exchange Trading? The foreign exchange market, commonly known as Forex or FX, is the exchange of one currency for another at an agreed-upon price. A trader buys one currency and selling another at the same time, and this is why exchange rates are expressed in terms of currency pairs. Currency or forex trading is a decentralized global market where all the currencies of the trading world trade online. The forex market is the largest and most liquid market in the world with an average daily trading volume greater than 7 trillion.
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