Forex is short for Foreign Exchange and it refers to the international currency trading market. This is an over-the-counter market which allows traders to participate in the ever-changing forex trading currency exchange rates. A good example is the U.S. Dollar versus the Euro.

Foreign exchange, commonly known as 'Forex' or 'FX', is the exchange of one currency for another at an agreed exchange price on the over-the-counter (OTC) market. Forex is the world's most traded market, with an average turnover in excess of US$4 trillion per day.