Foreign Exchange (Forex or FX) refers to one currency being exchanged for another. One can exchange the U.S. dollar for the euro, for instance. On the foreign exchange market, also known as the Forex Market , foreign exchange transactions will take place.

With trillions of dollars changing hands every day, the forex market is the biggest and most liquid market in the world.

Instead, the forex market is an electronic network of banks, brokers, institutions and individual traders (mostly trading through brokers or banks). There is no centralized place.

Main currencies in the Forex market are traded in pairs.

Here is a sample of some of the main currencies:

·        EUR                            European currency

·        GBP                            British Pound

·        CHF                            Swiss Frank

·        JPY                             Japans Yen

·        USD                            United States Dollar

·        Some brokers provide other various worldwide currencies e.g.:
New Zealand Dollar-NZD
Australian Dollar-AUD
Swedish Krona-SEK
Norwegian Krone-NOK
Canadian Dollar-CAD
and many others. They also provide trading with Silver, Gold, Petroleum and other commodities and futures.