What does Forex mean?
The foreign exchange market (Forex, FX, or currency market) is a global decentralized market for the trading of currencies. The market states the foreign exchange rate. Financial centers around the world function as anchors of trading between a wide range of multiple types of buyers and sellers around the clock, with the exception of weekends. Since currencies are always traded in pairs, the foreign exchange market does not set a currency's absolute value but rather states its relative value by setting the market price of one currency if paid for with another. Ex: 1 USD is worth X EUR, or GBP, or JPY, etc. The foreign exchange market works through financial institutions, and operates on several levels. Behind the scenes, banks turn to a smaller number of financial firms known as "brokers", who are involved in large quantities of foreign exchange trading. Most foreign exchange dealers are banks, so this behind-the-scenes market is sometimes called the "interbank marke...