Forex, generally known as foreign currency or FX, is the most widely traded market in the world , with an average daily turnover of more than $4 trillion. Currencies are traded 24 hours a day, 5 days a week, round the clock.
Forex is all about speculating on currencies that fluctuate between two countries. These two currencies are referred to as ‘currency pairs’ and are composed of the base currency and quote currency. The euro against the US dollar, which is usually viewed as EUR / USD, is the most exchanged currency pair.
Trading forex is buying and selling currencies-in order to make a profit. Forex trade would often require two currencies at a time, the currency base and the currency quotation. The price difference is where you will be making your profit or loss.
The forex market is the world ‘s largest, most liquid market, with trillions of dollars exchanging hands daily. Instead, the forex market is an electronic network of banks, brokers, institutions , and individual traders (mostly trading through brokers or banks).

Many organisations have currency needs, from financial institutions to individual investors, and may even speculate on the course of a specific pair of movements in currencies. They post their orders on the network to buy and sell currencies so they can communicate with other currency orders from other parties.