The introduction to Forex would mean, by first understanding what the term stands for. Forex roughly translated is Foreign Exchange. Foreign Exchange market or FX is a decentralized over the counter financial market for trading the currency of the numerous countries of the world. Now, over the counter or off-exchange means trading in the financial sphere – such a stocks and bonds.

The term Forex stands for foreign exchange. Basically it is a special financial market assigned for foreign exchange. Roughly translated it means a decentralized market wherein currencies of the numerous countries of the world are exchanged. This over the counter exchange allows two countries to be engaged in business with one another, and the ability to pay each other in the countries' respective currencies.

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The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies.