What is Forex?

Forex (foreign exchange) refers to the exchange of one country's currency for another country's currency. However, foreign exchange includes not only foreign currencies, but also various assets and payment instruments denominated in foreign currencies, such as foreign currency deposits, foreign currency checks, foreign government bonds, etc. In a narrow sense, foreign exchange refers to foreign currencies.

In international trading, investment and financial markets, foreign exchange is used for cross-border transactions to promote economic exchanges between different countries. The foreign exchange market is the world's largest financial market, with participants include central banks, commercial banks, hedge funds, companies and individuals, who speculate, invest or settle trade by buying and selling foreign exchange.