Forex may be the "place" where currencies are traded. Currencies are important to the majority of people around the world, whether they realize it not really, because currencies need to be exchanged to be able to conduct foreign trade and business. In case you are living in the U.S. and wish to buy cheese from France, either you as well as company that you buy the cheese from needs to pay the French for your cheese in euros (EUR). Which means that the U. S. importer would need to exchange the equivalent associated with U. S. dollars (USD) into euros. Exactly the same goes for traveling. A spanish tourist in Egypt can't pay in euros to select the pyramids because a possibility the locally accepted currency. Therefore, the tourist has to exchange the euros for your local currency, in this instance the Egyptian pound, in the current exchange rate.
The necessity to exchange currencies is the primary reason why the currency market is the largest, most liquid financial market on the planet. It dwarfs other markets in size, the particular stock market, with an average traded associated with around U.S. $2,000 billion each day. (The total volume changes all the time, but since of August 2012, the lender for International Settlements (BIS) reported that the currency markets traded around U.S $4.9 trillion each day)