How do currencies typically trade?

Currencies typically trade in pairs for 24 hours a day, which reflects the global nature of the foreign exchange (FX) market. This continuous trading is facilitated by a network of banks, financial institutions, and individual traders who buy and sell currencies around the clock, responding to economic news, geopolitical events, and market sentiment. Because currency values are determined relative to each other, they are always quoted in pairs, such as EUR/USD or GBP/JPY, representing the value of one currency against another.

The ability to trade 24 hours a day allows for greater liquidity and the opportunity for traders to respond to events that can happen at any time, making the forex market one of the largest and most dynamic markets in the world. This structure enables participants to enter or exit positions at any moment, facilitating both short-term trading strategies and longer-term investment decisions.