In the forex market, currencies are converted into each other. Be sure to enter the forex market once you convert one currency to another. As an example, American businessmen import goods from members of the European Union in the eurozone, convert dollars into euros to pay for the goods, and then sell them for dollars in the United States. This concept is the basis of the currency market, in which traders speculate on the difference in price between two currencies. It is not possible to obtain a currency except in the framework of pairs, such as the euro for a dollar or a dollar for a yen, since you have to convert one currency into another. Profits are earned by buying when the spread is low and selling when it becomes high.

Forex, or foreign exchange trading, traces its origins to ancient times when merchants exchanged currencies to facilitate trade. The modern forex market emerged in 1971 after the Bretton Woods Agreement ended, shifting from fixed exchange rates to floating ones. This allowed currencies to fluctuate based on supply and demand.

The market expanded with the rise of technology in the 1990s, enabling online trading and increased accessibility for individual investors. Previously dominated by governments, banks, and large financial institutions, the advent of retail forex platforms revolutionized participation.

Today, forex is the world’s largest financial market, with daily trading volumes exceeding $7 trillion. Its history reflects global economic shifts, technological advancements, and evolving financial systems, making it a cornerstone of international commerce.