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The forex market, or foreign exchange market, is a global decentralized marketplace for trading national currencies against one another. It is the largest and most liquid financial market in the world, with a daily trading volume exceeding $6 trillion.
What is Stock Markets
Stocks represent ownership in a company. When you purchase a stock, you acquire a share of that company, which entitles you to a portion of its assets and earnings. Stocks are a key component of investment portfolios and play a crucial role in the financial markets.
Key Features of the Stock Market
Forex trading involves buying one currency while simultaneously selling another, which is done in pairs (e.g., EUR/USD, USD/JPY). The first currency in the pair is called the base currency, while the second is the quote currency. The exchange rate reflects how much of the quote currency is needed to purchase one unit of the base currency.