|Forex (also known as the foreign exchange market) is a decentralized market in which currency pairs are exchanged one against the other, such as the euro pair against the US dollar (EURUSD) and other currencies to take advantage of their price movements and make money from the price difference, and this is done either through forex spot or CFDs.
The forex market is an over-the-counter (OTC) market, and it is the most liquid financial market, with a daily trading volume in 2022 of 6.6 trillion. In other words, in a single day, more money will be traded in the forex markets than the value of Japan's GDP! Of these transactions, $254 billion is traded through CFDs and other derivative financial instruments. Currencies, unlike most other tradable financial assets, are as much economic instruments as they are economic indicators. In other words, if we consider a country to be a company, its local currency will be considered as its shares.