The foreign exchange market, commonly known as the Forex market, is the world’s largest and most liquid financial market. It facilitates the trading of currencies between global participants including banks, corporations, investors, and individual traders. Understanding how the Forex market operates is essential for anyone who wants to engage in currency trading with awareness and confidence. Equally important is knowing how to handle the volatility that often defines this dynamic environment. This article explores the core mechanisms of Forex trading and provides essential tips for navigating market fluctuations effectively. Understanding the Structure of the Forex Market Unlike centralized exchanges such as stock markets, the Forex market operates on a decentralized network of
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