Describe Foreign Exchange or FX

Foreign Exchange (FX): It is the exchange of one currency for other or the transformation of one currency into another currency. Foreign exchange too refers to the global market where currencies are traded virtually all around-the-clock. The word foreign exchange is generally abbreviated as "forex" and seldom as "FX."

Foreign exchange transactions include everything from the conversion of currencies by a traveler at an airport kiosk to the billion-dollar payments made by corporate giants and governments for services and goods purchased overseas. Rising globalization has led to a massive raise in the number of foreign exchange transactions in current decades. The global foreign exchange market is by far the biggest financial market; with average every day volumes in trillions of dollars.

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