If the currency rate later moves to 1.50 to 1, you can sell those euros for $1,500, generating a profit of $100. The forex market runs 24 hours a day during the week, making it a very liquid market.

The forex market is not one physical entity with the equivalent of a stock exchange. It is a product of pricing and trading by individuals and institutions around the world.

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Forex is an around-the clock market with four main trading hubs working across different time zones: London, New York, Tokyo and Sydney. When trading has stopped in one location, the forex market ...

Leverage in any investment, including the forex market, amplifies both gains and losses. For example, if you buy $20,000 in currency and it moves up 10 percent, you’ll have a $2,000 gain.