The foreign exchange market, also known as "Forex" or "FX" market, is the largest financial market in the world, with an average daily transaction volume of more than $65,438+$0.5 trillion-equivalent to more than 30 times of the total transaction volume of all securities markets in the United States. "Foreign exchange trading" means buying one of a pair of currencies at the same time and selling the other. Foreign exchange is traded in the form of currency pairs, such as Euro/USD or USD/JPY. There are two main reasons for foreign exchange transactions. About 5% of daily transaction turnover is due to companies and government departments buying or selling their products and services abroad, or having to convert the profits they earn abroad into their own currencies. The other 95% transactions are for profit or speculation. For speculators, the best trading opportunity is always to trade the most frequently traded (and therefore the most liquid) currencies, which are called "major currencies".