Forex stands for FOReign EXchange, presenting the currency pairs exchange. One currency is bought and the other is sold against the first one, in order to make a profit out of the exchange.

Each currency is assigned a symbol of 3 letters, and in Forex they always come in pairs, where the first one is always ‘the boss’ of the pair. American dollars are USD, Euros are EUR, Swiss Franc are CHF and so on.

There are three main Forex categories, the major pairs, which contains the US dollar paired with another currency from the most developed countries in the world, like EUR/USD, USD/YEN , GBP/USD, CAD/USD, CHF/USD and NZD/USD. The minor pairs contain currencies from developed countries, paired together, but the US dollar is not included, like EUR / GBP and CHF / JPY. The exotics consist of a major and minor currency which come together in one pair, like EUR / TRY, USD / NOK, ect.