Forex is the abbreviation for Foreign Exchange, which is also known as International Foreign Exchange Market.
The foreign currency market exists wherever one currency trades with another. In the largest market in the world, with more than two trillion dollars negotiated daily, which includes negotiations between large banks, central banks, and currency speculators, multinational corporations, governments and other financial markets.
Retail traders are a small part of this market, they can only participate indirectly through banks and brokers.
One of the characteristics of this market is that unlike other financial markets, this does not weigh a physical location. It operates through an electronic network of banks, companies and people who exchange one currency for another.
Forex trading is done in pairs, buying one currency and selling another. Traders speculate on the price difference by getting a profit or a loss when they vary.
The Forex market has gained popularity quickly, due to its high liquidity, while online trading has made Forex a good investment option, not only for large institutions and banks but also for private investors around the world.