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Home/Glossary/Forex

Forex and CFDs · Rookie

Forex

By Omer Rapaport · Content updated 11 September 2026

Also searched as: FX, foreign exchange

What does Forex mean?

Forex is the market for exchanging one currency against another. Trading a currency pair expresses exposure to the relative value of its two currencies.

Example

Buying EUR/USD expresses a view that the euro will rise relative to the US dollar.

Illustrative example; not a provider’s quoted offer.

Why it matters for prop traders

A prop account may simulate forex trading rather than deliver or exchange currencies.

Sources and further reading

The following primary sources support the terminology. Provider rules describe their own products and may change.

  • IG - Trading glossary
  • FTMO - Account capital and simulated balances

Related terms

  • Currency pair
  • Pip
  • Lot size
  • Contract for difference
← All 181 terms

Frequently asked questions

Does a forex prop account necessarily exchange real currencies?

A prop account may simulate forex trading rather than deliver or exchange currencies.

Sources: IG - Trading glossary · FTMO - Account capital and simulated balances

What is a practical example of Forex?

Illustrative example: Buying EUR/USD expresses a view that the euro will rise relative to the US dollar.

Sources: IG - Trading glossary · FTMO - Account capital and simulated balances

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