Foreign exchange (FX) is the process of exchanging one currency for another. It is a global market that is open 24 hours a day, 5 days a week. The FX market is the largest financial market in the world, with trillions of dollars traded every day. The main participants in the FX market are banks, central banks, hedge funds, and retail traders.

The value of a currency is determined by supply and demand. If there is more demand for a currency than supply, the value of the currency will rise. If there is more supply of a currency than demand, the value of the currency will fall.