Foreign exchange is also known as forex or FX and is the exchange of one currency to another through an agreed exchange price on what is called an over-the-counter (OTC) market. Forex is one of the most-traded markets in the world, with a turnover of $5.3 trillion each day, compared to some $50 billion on the New York Stock Exchange. Forex markets are open all day from Sunday evening to Friday night. In its most basic form, forex trading is the speculative buying of one currency while selling another. Currency values change due to a number of factors, including economics and geopolitics, and the ultimate goal of the trader is to predict these changes and make money.
If a business wants to enter the forex market, it is often best to hire foreign exchange trading professionals and consultants to start the process. They can help establish key factors, such as when the best times to enter the markets are as well as what the different markets around the world are and what influences them. These experts can advise which currency pairs to work with, as each pair includes a base currency and a counter currency; for example, a EUR/USD pairing has the euro as the base and the U.S. dollar as the counter. Forex trading pros can also educate clients about what particular factors have historically done to the market, when, and for how long.