Foreign Exchange (Forex)
- Foreign exchange, also known as forex, is the conversion of one country's currency into another.
- The value of any particular currency is determined by market forces related to trade, investment, tourism, and geo-political risk.
- Foreign exchange is handled globally between banks and all transactions fall under the auspice of the Bank for International Settlements (BIS).
- The forex market is the largest, most liquid market in the world, with trillions of dollars changing hands 24 hours every day.
- Forwards and futures are another way to participate in the forex market.