Foreign exchange, often called forex, is the process of converting one currency into another. This is essential for international trade, travel, and investment, as different countries use different currencies. For example, if you travel from the United States to Europe, you need to exchange your US dollars for euros to make purchases. The forex market is the largest financial market in the world, where currencies are bought and sold. It operates 24 hours a day, allowing traders to take advantage of price fluctuations. Factors like interest rates, economic stability, and political events can influence currency values, making forex trading both exciting and complex.