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Foreign exchange, often abbreviated as Forex or FX, refers to the global marketplace where currencies are bought and sold. It is a decentralized market, where participants, including banks, financial institutions, governments, corporations, and individual traders, exchange one currency for another based on agreed-upon exchange rates. Foreign exchange transactions facilitate international trade, investment, and tourism, making it one of the largest and most liquid financial markets globally.

Features of the Foreign Exchange Market:

1. Global Market: The foreign exchange market operates 24 hours a day, five days a week, across different time zones. As a global market, it allows participants from around the world to trade currencies at any time.

2. Decentralization: Unlike traditional stock markets that are centralized exchanges, the foreign exchange market is decentralized. It operates through an electronic network of banks, brokers, and other financial institutions, allowing for continuous trading without a central exchange.

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