In Forex (foreign exchange; also known as FX) trading, traders buy one currency while simultaneously selling another. Basically, traders exchange the currency that they are selling for the one that they are buying. The Forex market is an over-the-counter (OTC) market.
Forex is the biggest and the most actively traded financial market in the world with an average daily turnover of 3 to 4.5 trillion dollars! Unlike the stock market, there is no centralized exchange for Forex . All orders are completed via phone or done electronically. However, online forex trading is gaining lots of attention recently.