Forex Market in simple terms is the foreign exchange market.
It’s estimated that around $4 trillion is traded on forex markets every single day. It’s impossible to appreciate how big that number is. But put it this way: that’s greater than the turnover of all of the world’s stock and bond markets combined.
A key feature of forex trading is that it’s always done in ‘pairs’. Every forex trade consists of two currencies. You are effectively buying one currency and simultaneously selling another – you exchange one for the other. That’s why the rate at which they are traded is called the exchange rate.
The first currency in a pair is referred to as the “base currency” and the second is called the “quote currency”. Most currency pairs are priced out to four places past the decimal point. When the very last number moves up or down by one increment, that’s called a ‘pip’. A pip is the smallest price change that an exchange rate can make. On an average day a major currency pair moves
between 100 and 200 pips.
EUR/USD is the world’s most traded currency pair accounting for more than a quarter of all forex trades, closely followed by USD/JPY and GBP/USD.
My Secret Passion- Trading 