The foreign exchange market (forex) is a worldwide financial market for the trading of currencies. Financial centers scattered around the world facilitate the trading for buyers and sellers around the clock, except weekends. The primary purpose of the foreign exchange is to assist international trade by allowing individual businesses or private investors to convert currencies.

In a typical forex trading transaction, a buyer purchases one currency by paying another. The foreign exchange market is very unique because it possesses the following qualities: a high liquidity, wide geographical dispersion, the low margins of relative profit compared with other markets of fixed income, and the use of leverage to enhance profit margin.