Forex trading revolves around currency pairs, where one currency is exchanged for another. These pairs are quoted in terms of exchange rates, representing the value of one currency relative to another. For example, in the EUR/USD pair, the euro is the base currency, and the U.S. dollar is the quote currency.

Various participants engage in forex trading, including retail traders, institutional investors, banks, corporations, and governments. The diversity of participants contributes to the market's liquidity and volatility.

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