Forex, short for foreign exchange, is the global marketplace where various currencies are traded. It’s the most liquid and largest financial market in the world, where individuals, institutions, banks, corporations, and governments participate in buying and selling currencies.

The primary purpose of the forex market is to facilitate international trade and investment by allowing entities to convert one currency into another. For instance, if a business in the United States wants to import goods from Europe, it might need to convert its US dollars into euros to complete the transaction.