The foreign exchange market is where currencies are traded. This international market's most unique aspect is that it lacks a central marketplace. Instead, currency trading is conducted electronically over the counter (OTC). This means that all transactions occur via computer networks among traders worldwide rather than on one centralized exchange.

The FX market is the only truly continuous and nonstop trading market in the world. In the past, the forex market was dominated by institutional firms and large banks, which acted on behalf of clients. But it has become more retail-oriented in recent years—traders and investors of all sizes participate in it.

The best way to get started on the forex journey is to learn its language. Here are a few terms to get you started: 1. Forex account :A forex account is used to make currency trades. Depending on the lot size, there can be three types of forex accounts: 2.Ask:An ask (or offer) is the lowest price at which you are willing to buy a currency. 3. Bid: A bid is the price at which you are willing to sell a currency. 4.Contract for difference: A contract for difference (CFD) is a derivative that lets traders speculate on price movements for currencies without owning the underlying asset. 5. Leverage: Leverage is using borrowed capital to multiply returns. The forex market is characterized by high leverages, and traders often use it to boost their positions.

Trading forex is similar to equity trading. Here are some steps to get yourself started on the forex trading journey. 1. Learn about forex: While it is not complicated, forex trading is an undertaking that requires specialized knowledge and a commitment to learning. 2. Set up a brokerage account: You will need a forex trading account at a brokerage to get started with forex trading. 3. Develop a trading strategy: While it is not always possible to predict and time market movement, having a trading strategy will help you set broad guidelines and a road map for trading. 4. Always be on top of your numbers: 5. How do I make sure I order the right size? 6. Where are you located? 7. Can I make changes to an order I already placed? 8. How do I get a new password?

There are two distinct features of currencies as an asset class: 1.You can earn the interest rate differential between two currencies. 2.You can profit from changes in the exchange rate. So, you can profit from the difference between two interest rates in two different economies by buying the currency with the higher interest rate and shorting the currency with the lower interest rate. For instance, before the 2008 financial crisis, shorting the Japanese yen (JPY) and buying British pounds (GBP) was common because the interest rate differential was substantial. This strategy is sometimes referred to as a carry trade.