Forex (an acronym of Foreign Exchange, and also known as FX) is the term used to describe the practice of trading the world's currencies. When any currency is exchanged, the exchange takes place on the Forex market. Some traders use this market to sell one currency whilst buying another in order to make a profit. The trades which take place on the Forex market can range from around USD 200 to millions, and there is the potential to gain substantial profits on the larger deals.

One of the major appeals of the Forex market is that it operates 24 hours a day, 5 days a week. This is attractive to a trader because fluctuations in currency value can occur at any time, and the almost constant availability of the market means that full advantage can be taken of these fluctuations as and when they occur. There is no set location of the market, and the majority of deals take place over the internet or via telephone. There are, however, large trading centres worldwide, in such cities as London, Tokyo and New York.

Whilst it is not necessary to be an expert before commencing trading, it is advantageous to gain a basic understanding of the market and the commonly used terms involved. Although many large scale deals take place, smaller deals are also common, with some Forex brokers willing to open an account on your behalf for as little as $100, meaning that the market is open to just about anyone.