The term Forex is quite familiar to most people in the business sector. The Foreign Exchange Market is the largest known financial market in the whole world and many stories of success and failure have loomed over its existence. Its popularity has zoomed over the years and it now has a daily turnover average of $1.9 trillion US dollars. Putting it simply, Forex means simultaneous buying of a currency and the selling of yet another currency, these currencies are being traded in pairs, one currency being traded for another.
There are two good reasons why currencies are bought, and sold. Five percent of the daily turnover comes from companies and/or governments that buy/sell products and services from foreign countries. They will then convert their profits (foreign currencies) into their respective domestic currencies.