Forex is how market participants convert one currency to another. It can variously be referred to as foreign exchange, FX, or currencies.
Forex trading is the world’s biggest financial market, with individual traders, businesses and central banks all taking part in order to speculate for profit, maintain money supply or facilitate international trade. Part of the reason for this is its liquidity: because there is no central exchange for forex, all trades are taken care of over the counter.
Forex is tradable 24 hours a day, and there are few limits to making trades. While most consumers will have undertaken forex trades in order to go on holiday or purchase something abroad, the vast majority of forex trading is undertaken by traders and businesses who are attempting to make a profit.