Introduction The foreign exchange market, commonly referred to as forex or FX, is the global marketplace for the trading of currencies. It is the largest and most liquid financial market in the world, with trillions of dollars changing hands every day. The forex market is decentralized and over-the-counter (OTC), meaning that there is no central exchange where trades are executed. Instead, trades are conducted electronically between banks, brokerages, institutional investors, and individual traders. Understanding the Basics of Foreign Exchange Currency Pairs In the forex market, currencies are traded in pairs. The first currency in the pair is the base currency, and the second currency is the quote currency. For example,…