Forex or foreign exchange market is the largest financial market in the whole world. It is even larger than the stock market. Forex market is as old as money itself. Many have claimed that they made a fortune trading in the forex market.
When we talk about globalization we mention things such as tourism, international flights, shipping but we often ignore the role of financial institutions in making that happen. Without Forex, international trade is impossible. Since the existence of money, every country had its own currency, even when gold was the currency of the world. Not all gold coins were equal, some were made out of good quality gold while others were mixed with other metals. Hence merchants always had the problem of measuring the value of different currencies. Today, even if we created paper currencies and completely demolished the gold standard, the problem still did not vanish. In fact, it became even more complicated since each country created its own currency. Currently there are about 180 currencies in the world. You can’t simply use your own currency in any country you plan to visit. Forex plays a big role with all of these currency transactions.