Glossary
From A to Z all the terms you need to skip the jargon and get started!
FX
FX, short for foreign exchange, refers to the global market where currencies are bought, sold, and exchanged.
It is the largest and most liquid financial market in the world, with participants including banks, corporations, governments, and individual investors. Currency exchange rates are constantly fluctuating due to factors such as economic data, geopolitical events, and market sentiment. 💱
For example, a traveler visiting Europe from the United States would need to exchange their US dollars for euros at the current exchange rate, which is determined by the FX market.
Fun fact: The average daily trading volume in the FX market is over $6 trillion, which makes it far larger than any stock market. One of the most actively traded currency pairs is the EUR/USD (euro against the US dollar), which reflects the relative strength of the European and American economies. 💶💵