How to trade forex for beginners can seem overwhelming at first, but the idea is simple. You exchange one currency for another and aim to profit from changes in their value. If you are new to trading, this guide will walk you through the basics in a way that is easy to understand and apply. Understanding What Forex Is Forex, also known as the foreign exchange market, is the largest financial market in the world. It is open twenty-four hours a day, five days a week. Currencies are pairs, pairs such as EUR/USD or GBP/JPY. The first currency is called the base currency, and the second is the quote currency. Your goal is to predict whether the base currency will rise or fall compared to the quote currency.