Forex is an abbreviation for the foreign exchange market, also known as FX. On the foreign exchange market, people trade in currencies such as USD, CAD, EUR and many others.
What is Forex Trading?
A forex trade involves the simultaneous purchase of a quantity of one currency along with the sale of a quantity of another type of currency. So, for example, a trader might buy USD and sell CAD.
Forex traders attempt to profit off of the future changes in the relative value of various currencies, both in the short term and the long term.