The foreign exchange (FX) market is where currencies trade against each other. It is decentralised: there is no single equity-style exchange floor. Liquidity comes from banks, non-bank dealers, and electronic platforms quoting continuously across global sessions.
A pair such as EUR/USD shows how many US dollars one euro buys. The first currency is the base; the second is the quote. If EUR/USD rises, the euro has strengthened versus the dollar—holding exposure is not the same as “being long Europe stocks.”
Participants include corporations hedging invoices, asset managers with multi-currency portfolios, banks managing inventory, and speculators expressing macro views. Retail access is usually through regulated brokers offering rolling spot or CFD wrappers. Terms, margin, and protections differ by jurisdiction—read disclosures.
Liquidity is deepest in major USD pairs during London–New York overlap. Session habits matter: Asia may be quieter for some crosses; event risk can dominate session stereotypes.
Spread—the gap between bid and ask—is a real cost. “Commission-free” marketing often means spread-embedded pricing. Compare all-in costs including financing on held positions.
Leverage maps a small balance to larger notional. It can accelerate outcomes but does not create edge. See the paired lesson on margin mechanics before sizing live risk.
FX is not crypto, but macro links exist: rate differentials, risk appetite, and USD funding conditions spill into many assets. Use calendars and quotes on VegaDeck as context, not as triggers.
Educational content only — cross-check figures with primary sources before relying on them for trading decisions.
中文版：/academy/what-is-forex-zh
Educational only · not investment advice · Risk disclosures