Forex basics · Beginner

What Is Forex?

A 1-minute lesson from the MarketPro academy, one of 24 in forex basics.

Last reviewed 15 September 2026 by the MarketPro research desk · Editorial policy

Short answer

Forex (foreign exchange) is the global market where currencies are traded against each other. When you exchange euros for dollars before a holiday, you are participating in forex at a tiny scale.

The world's largest market

Forex (foreign exchange) is the global market where currencies are traded against each other. When you exchange euros for dollars before a holiday, you are participating in forex at a tiny scale. Institutional banks, corporations, governments and retail traders do the same thing at enormous scale, which is why daily forex turnover is measured in trillions of dollars.

What you actually trade

Currencies are always traded in pairs, such as EUR/USD or GBP/JPY. Buying a pair means buying the first (base) currency and simultaneously selling the second (quote) currency. Your profit or loss comes from changes in the exchange rate between the two.

Finish this lesson in the MarketPro app

5 more sections of What Is Forex?, plus all 320 lessons, the quizzes that check each one landed, and the streak that keeps you coming back. All of it is free on any account, including a free one. There is no paywall inside the academy.

Scan with your phone camera to install MarketPro and open this lesson.

Download on theApp Store Get it onGoogle Play

Free account, no card. The academy has no paywall inside the app.

Not investment advice. Past performance is not indicative of future results.

Who moves the market

Central banks set interest rates and can intervene directly.
Commercial banks and funds handle the bulk of daily flow.
Corporations exchange currency for trade and hedging.
Retail traders are a small slice of volume, trading through brokers.

Why people trade it

Forex is liquid, open 24 hours on weekdays, and accessible with small starting capital. Those same properties also make it easy to overtrade and take on too much risk. Trading currencies involves a substantial risk of loss, and most new traders lose money while they learn. Treat your early months as tuition: trade small, focus on process, and never risk money you cannot afford to lose.

Key takeaway: forex is simply the exchange of one currency for another at scale. Understanding who participates and why prices move is the foundation for everything else in this hub.

Step 1 of 12 on Forex Foundations

PreviousStart of the path NextPips, Lots and Contract Sizes

Run the numbers while this is fresh

The arithmetic in this category has a free calculator on this site, no sign-up and nothing leaves your browser: Pip value calculator, Position size calculator, Margin calculator, Leverage calculator.

Written and reviewed by the MarketPro research desk

MarketPro is a trading-signal and trading-education app operated by Harajuku Holdings LTD (Cyprus). Our signal desk publishes and tracks every trade idea in-app, and every page here is checked against the app's live behaviour before publishing. Last reviewed 15 September 2026. How we produce signals and content · About MarketPro

Trade · Learn · Earn

The whole academy is free in the app

All 320 lessons, 12 guided paths, quizzes and a daily streak. Free on every account, with vetted free signals alongside it.

Download on theApp Store Get it onGoogle Play

Not investment advice. Past performance is not indicative of future results.