Foreign exchange, forex, or FX for short, refers to the trading (buying and selling) of currencies. In the forex market, currencies are traded in pairs, with the price of one set relative to the other. When a trader buys a currency, he or she is selling another currency at the same time.
The forex market has no physical location or central exchange. It is a global, decentralized market that trades 24 hours a day, 5 days a week.