Forex, (foreign exchange market, FX, or currency market) is a global, worldwide financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers 24 hours a day, with the exception of weekends. The foreign exchange market determines the relative values of different currencies in its $4 trillion a day trade volume.
The primary purpose of the foreign exchange is to aid in international trade and investment, by allowing businesses to convert one currency to another currency. It also supports direct speculation in the value of currencies, and the carry trade, speculation on the change in interest rates in two currencies.
A large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.
In the foreign exchange market there is little or no ‘inside information’. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so everyone in the world receives the same news at the same time, with no particular advantage over another trader.