The foreign exchange market is a global marketplace for exchanging world currencies for others
Forex is the most liquid asset market in the world, averaging $5.1 trillion in daily trading volume, due to its worldwide reach of trade and finance.
Travelers are familiar with currency exchange due to using multiple different currencies in different countries and exchanging those currencies when they reach the next destination of choice that coins a different currency
Exchanging currencies plays a vital role in all societies whether people realize it or not. If you buy Italian tomato sauce in the US you pay with the dollar, then the dollar is at some point converted to Euro in order to pay the Italian company for the sauce.
One unique feature of the Forex market is that it is not exchanged at a centralized location. It is conducted electronically, over-the-counter (OTC), meaning transactions occur through a chain of computer networks between traders worldwide.
The market is open 24 hours a day, five days a week and traded strategically across many different time zones. (Sydney, Tokyo, Singapore, Hong Kong, Zurich, Frankfurt, Paris, London and New York) This assures the market is open 24 hours throughout the week with the US market closing and the Tokyo and Hong Kong markets opening.
In the most basic sense exchanging currencies has been around since nations began minting their own currencies.
Interest rates, trade flows, tourism, economic strength and affect supply and demand for currencies, which creates daily volatility in the forex markets
Most importantly for traders is that you can make money on the exchanging of currencies worldwide. People have literally quit their day jobs and became day traders once they are knowledgeable