Forex trading, or foreign exchange, is the process of simultaneously buying one currency and selling another. It takes place on the largest financial market in the world, where trillions of dollars are traded every day. Unlike the stock market, which has opening and closing hours, the forex market is open 24 hours a day, five days a week, allowing traders to get involved whenever it’s convenient.

A large part of the appeal of forex is its accessibility. It’s a very liquid market, meaning that trades can be opened and closed very quickly with very little waiting time. It’s also flexible. Anyone with an internet connection can trade from home, in a cafe, or while they’re travelling. In addition, most retail brokers offer some level of leverage, which allows traders to control a larger position with a smaller amount of capital. However, leverage can work both ways. It can increase profits, but it can also increase losses quickly and exponentially. This is why risk management is the foundation of successful forex trading.