The foreign exchange market, often called Forex or FX, is a global marketplace where currencies are traded. It operates 24 hours a day, five days a week, allowing participants to buy, sell, and exchange currencies at current or determined prices. This market is essential for international trade and investment, as it enables businesses and individuals to convert one currency into another. Participants in the foreign exchange market include banks, financial institutions, corporations, governments, and individual traders. The market is decentralized, meaning there is no central exchange; instead, trading occurs over-the-counter through electronic networks. Exchange rates fluctuate based on supply and demand, influenced by economic indicators, geopolitical events, and market sentiment.