Foreign exchange, or forex and fx for short, is a decentralized global market where the world's currencies are traded. Forex is the largest financial market in the world, with an estimated daily trading volume of over $6 trillion. Participants in the forex market include banks, corporations, governments, individual investors, and speculators.

The forex market is unique in that it operates 24 hours a day, five days a week, with trading sessions opening in Asia, followed by Europe and then North America. Trading in the forex market involves buying one currency while simultaneously selling another. The exchange rate between two currencies is the price at which one currency can be exchanged for another.

Investors use the forex market to speculate on the price movements of currencies to make a profit. They may do this by analyzing economic data, technical indicators, or other factors that could affect the value of a currency. However, Forex trading involves a high level of risk and is not suitable for everyone. Therefore, it's essential to have a good understanding of the market and its risks before investing in forex.

Foreign exchange, forex, or fx for short, is the exchange of one currency for another.
Say, you decide to go on your holidays to Las Vegas. It makes perfect sense to carry a couple of credit cards and some US dollars, just in case. So, you go to the local bank and hand in one thousand euros to get the equivalent in US dollars. All set to go! Amazing! Awesome! I am sure you had a very good time and enjoyed the glitz and the glitter! But time flies. On the way back, you realize that you have three thousand dollars.

Off you go to the nearest bank to convert it to euros. This is foreign exchange. Nowadays, this exchange is carried out online to benefit from price fluctuations.