Forex (FX) is a portmanteau of the words ‘foreign currency’ and ‘exchange’. Foreign exchange is the process of changing one currency into another for various reasons, usually for commerce, trading, or tourism. According to a 2022 triennial report from the Bank for International Settlements (a global bank for national central banks), the daily global volume for forex trading reached $7.5 trillion in 2022.

Read on to learn about the forex markets, what they’re used for, and how to start trading.