A definition of foreign exchange

FOREX, stands for Foreign Exchange,The foreign exchange market is a 24-hour-a-day market where currencies are traded. With an estimated $1.4 trillion in currencies traded daily, Forex provides income to millions of traders and large banks worldwide.

business enterprises convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.

In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a measure of another currency. The modern foreign exchange market began taking form during the 1970s when countries step by step switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.

Forex exchange is used by companies in nearly every country in the world.  In order to exchange their currencies from country to country, they may get currency trades on the FOREX market.  They also may hedge against currency fluctuations.  Currency trading is as well common among speculators who try to anticipate exchange rate movements.