What is Forex?

1. The idea in one sentence

Forex (foreign exchange) is the global market where one currency is exchanged for another, and traders try to profit from changes in the price of one currency versus another (for example EUR/USD).

2. Currency pairs

In forex you always trade pairs. EUR/USD is “euro versus US dollar”. The first currency (EUR) is the base, the second (USD) is the quote. If EUR/USD goes up, it means one euro is now worth more dollars than before.

• Majors: pairs with USD, like EUR/USD, GBP/USD, USD/JPY.
• Minors: pairs without USD, like EUR/GBP.
• Exotics: one major + a smaller economy, often with wider spreads.

3. What moves the price?

Price moves because of orders — people and institutions buying and selling. News, interest rates, risk sentiment and large players shifting capital can all create moves on the chart. You do not need to predict every news event; instead, you learn to read how price is reacting.