What is Forex ? - eToro Forex

What is Forex?

What is Forex ? The Forex market is one of the biggest trading markets in the world and is accessible to any individual over the age of 18. Forex trading is the real time buying of one currency and the selling of another. It allows people to make a profit by trying to calculate which currency's value will increase by the end of a determined time. While Forex trading may sound difficult, it is actually not that complicated and it is possible to comprehend even if you have not studied finance or economics.

Always remember that the first currency listed in a currency pair is called the "base currency". A base currency is usually the USD and traders will usually trade the USD against another currency. When the USD is the base unit and a currency quote increases, it means the dollar has risen in value and the other currency has weakened (For example: If, the USD/JPY quote used to be equal to 2.45 and after an allotted time, the USD/JPY quote is 2.60, then the dollar is stronger because it can now buy more Japanese Yen).

You can trade in the market 5 days a week, see the eToro Market Hours page for more details of opening times.
We highly recommend that you take a look at our Forex Terminology section which will explain to you the most common terms used in the industry.
See our list of Market Indicators which will help you understand the impact of World events on the Forex market.

eToro offers the most exciting online Forex trading platform. Launched on the 1st September 2007 eToro has quickly established a reputation as the most innovative trading platform in the world. Develop your skills using real market rates and win cash prizes in our free competitions. Meet and chat with other traders from allover the world in private or in public. With eToro you can trade Forex for free or for real money in a secure, user friendly and real-time environment.

eToro Online Forex Trading

Trading in the Forex market can bring potential rewards, but can also be risky. You have to be aware of the risks and be willing to accept them in order to trade in the foreign exchange market.