What is Forex: Foreign Exchange?

Foreign exchange is the process enabling the buying and selling of the currencies of the different nations of the world. The foreign exchange market, or the Forex, as it is commonly known, is where these currency exchanges are executed. Without the ability to exchange currencies, international trade would simply not occur. A floating exchange rate is used and it is based upon many different market factors. The foreign exchange market is one of the largest and more important markets in the financial world.