Forex (Foreign Exchange)

The global over-the-counter market for trading currencies, and by daily volume, the largest financial market in the world -- exceeding $7 trillion per day. Forex operates 24 hours a day across sessions in Sydney, Tokyo, London, and New York. Traders speculate on currency pairs like EUR/USD or GBP/JPY, and leverage ratios can be far higher than in equities, making forex both attractive and treacherous for undisciplined traders.