The term forex came from blending of words ‘foreign’ and ‘exchange’. It describes foreign exchange market – the biggest and the most liquid market of the world.
The daily turnover in the forex market is approximately $5 Trillion, this is much higher than any other market. Each day currencies worth of billions of dollars are exchanged by traders, brokers, financial institutions, investors and profiteers who create the market.
The high liquidity means that each transaction is executed immediately – the situation that you can’t execute the transaction because no one wants to sell or buy a contract is virtually impossible.