Forex (Foreign Exchange Market), called Forex or FX for short, is a financial market that determines the exchange rate of currencies worldwide. Unlike stock markets, it does not have any centralized physical market or a specific location. 

Investors connect to this market by using traders and through the platforms provided to them and carry out their investment activities.

Currency markets consist of banks, hedge funds, forex dealers, exchanges, central banks, trading companies, retail forex dealers, investment management companies, and investors who form the leading players in this market.

In the forex market, powerful currencies and several small but stable countries' currencies are traded with each other. Currencies such as US Dollar, European Euro, British Pound, Japanese Yen, and more minor currencies such as the South African Rand and Turkish Lira are traded in this market.

How to trade in the forex market 

Transactions made in the forex market are always in the form of currency pairs (buying and selling two currencies simultaneously), which include a base currency and a counter currency. It means that when you buy a currency in this market, you have sold another currency at the exact moment, and your capital is continuously circulating.

If you have ever traveled abroad, you must have exchanged your money for another currency. For example, if you want to travel to Iran, you must give your Afghani cash to one of the exchange offices in Afghanistan and receive Tomans in return. The value of each of these currencies is determined based on market supply and demand. This supply and demand determine how much Afghanis you have to pay for one million Tomans. This amount of change happens every moment in the forex market.

For example: If the exchange rate of Afghani to Kaldar is 3.3 today, and tomorrow every 1 Afghani is traded equal to 3.4 Kaldar, it means that Kaldar has lost a little of its value against Afghani.

Base currency 

The base currency or main currency is the first currency that appears in the "currency pair" of the forex market and is bought or sold against the opposite currency in transactions.

So, based on the above example, a trader will spend one Afghani to buy 3.4 Pakistani Rupee.

Also, a trader can sell 1 Afghan for 3.4 Kaldar.

Prices in forex are often expressed with four decimal places, but generally, there is no definitive rule about the number of sites representing prices in forex.

The value of currency transactions in the forex market is often millions of dollars, so even small prices can quickly turn into a significant profit.

Forex market popularity

One of the crucial points about the forex market compared to other financial markets is the high volume of daily transactions. In general, the increased popularity of this market due to its countless income-generation opportunities has attracted the attention of many brokers worldwide.

According to the announced statistics, the amount of daily forex transactions accounts for about 6.6 trillion dollars, which indicates the level of credibility, importance, and high potential of generating income in this market.

89.1% of forex traders are men, and 10.9% are women.

According to Forex School Online, only about 15% of traders profit in this market.

About 10 million people are engaged in trading in the forex market. These ten million people are scattered in the world as follows:

• 3.2 million people in Asia
• 1.5 million people in Europe and North America
• 1.3 million people in Africa
• 600 thousand people in South America
• 335 thousand people in Central America
• 190 thousand people in Australia

As a result, today's forex market, with the advancement of technology and modern financial and accounting systems, by providing simple methods of currency exchange all over the world, has facilitated the process of transactions in Sarafis and has significantly maintained its popularity among different classes of investors, traders and money changers (Sarafs).