The forex (foreign exchange or FX) market is a global marketplace where individuals, corporations, and central banks exchange national currencies at an agreed price. When you travel abroad, it’s common to make forex transactions. While a lot of foreign exchange is done for practical reasons, the main purpose of most currency conversion is profit generation.
The vast volume of currency conversion that occurs daily can make currency price movements extremely volatile. It is this volatility that makes forex so appealing to traders as there is the potential to make substantial profits though there is also increased risk.
