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Introduction to Forex Trading Forex, short for foreign exchange, is the global marketplace for buying and selling currencies. It's the largest and most liquid financial market in the world, where currencies are traded against each other. Forex trading is essential for international business and investment, allowing participants to exchange one currency for another based on exchange rates. How Forex Works 1. Currency Pairs In Forex, currencies are traded in pairs. Each pair consists of a base currency and a quote currency. For example, in the pair EUR/USD, the Euro is the base currency, and the US Dollar is the quote currency. The exchange rate represents the amount of the quote currency needed to purchase one unit of the base currency. 2. Exchange Rates Exchange rates fluctuate constantly due to various factors such as economic indicators, geopolitical events, and market sentiment. Traders aim to predict these fluctuations to profit from buying low and selling high. Exchange rates