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
and many others. They also provide trading with Silver, Gold, Petroleum and other commodities and futures.