The foreign exchange (also known as forex or FX) market is a global marketplace where national currencies are exchanged.

Due to the worldwide reach of trade, commerce, and finance, forex markets tend to be the world's largest and most liquid asset markets.

Global currencies are traded against each other as currency pairs. For example, EUR/USD is a currency pair used to trade the euro against the US dollar.

Forex markets exist as spot (cash) markets, as well as derivative markets offering forwards, futures, options, and currency swaps.

Market participants use forex to hedge against international currency and interest rate risk, speculate on geopolitical events, and diversify their portfolios, among other reasons.