The foreign exchange (forex or FX) market serves as a global arena for trading national currencies, making it the largest and most liquid asset market globally due to its widespread influence on trade, commerce, and finance. Within this market, currencies are exchanged against each other in pairs based on their exchange rates.

In forex trading, you speculate on whether one currency's price will rise or fall against another. For example, if you believe that the value of the euro will rise relative to the Japanese yen, you would trade the EUR/JPY pair.

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