Forex: meaning, definitions and examples
💱
forex
[ ˈfɒrɛks ]
foreign exchange market
Forex is the abbreviation for the foreign exchange market, where currencies are traded. It is the largest and most liquid market in the world, with an average daily trading volume exceeding $5 trillion. Participants in the Forex market include banks, financial institutions, governments, corporations, and individual traders.
Synonyms
FX market, currency market, foreign exchange.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| forex |
Often used in investment and trading circles to refer to the global market for trading currencies.
|
| FX market |
Primarily used in professional investment and financial sectors, often seen in written reports and analysis.
|
| currency market |
Used in broader financial contexts, especially when discussing economic conditions or national policies related to currencies.
|
| foreign exchange |
Commonly employed in business and tourism to refer to the exchange of one currency for another.
|
Examples of usage
- The Forex market operates 24 hours a day, five days a week.
- Many investors use Forex trading to speculate on the fluctuations in currency exchange rates.
Translations
Translations of the word "forex" in other languages:
🇵🇹 mercado cambial
🇮🇳 विदेशी मुद्रा बाजार
🇩🇪 Devisenmarkt
🇮🇩 pasar valuta asing
🇺🇦 валютний ринок
🇵🇱 rynek walutowy
🇯🇵 外国為替市場
🇫🇷 marché des changes
🇪🇸 mercado de divisas
🇹🇷 döviz piyasası
🇰🇷 외환 시장
🇸🇦 سوق العملات الأجنبية
🇨🇿 devizový trh
🇸🇰 devízový trh
🇨🇳 外汇市场
🇸🇮 devizni trg
🇮🇸 gjaldeyrismarkaður
🇰🇿 валюта нарығы
🇬🇪 ვალუტის ბაზარი
🇦🇿 valyuta bazarı
🇲🇽 mercado de divisas
Etymology
The term 'Forex' is a blend of 'foreign exchange'. The modern Forex market originated during the 1970s when countries gradually shifted from fixed exchange rates to floating exchange rates. This transition allowed the market to develop into the largest and most liquid financial market globally.