Foreign Exchange (Forex or FX) is a decentralized financial market that provides the opportunity to trade worldwide, where countries' currencies are bought and sold against each other at relative values, predominantly in a spot transaction manner, and may involve leverage...

The primary purpose of Forex is to facilitate international investment and trade by allowing the exchange of one currency for another. Participants in the Forex market include central banks, institutional investors, currency speculators, and individual traders.

By its nature, the Forex markets are highly volatile and sensitive to economic and political developments, reacting rapidly and with significant price movements to these developments. Therefore, investors who are aware of this high volatility and can tolerate significant price changes in a short period are better suited to trade in the Forex markets.