Forex means the Foreign Exchange Marketplace where you can trade currencies. In order to conduct trade and business, currency needs to change hands. Let us take an example. Suppose you are living in India and want to purchase a perfume from France. So it would be considered as an import and either you, or the company that you buy the perfume from is compelled to pay France in Euros. It implies that the Indian importer of the perfume has to exchange the equivalent amount of Rupees into Euros in order for the exchange to take place. Similarly, if you’re travelling abroad, your local currency is of no use there because it will not be accepted, you need to convert your currency based on the prevalent exchange rates and that is done via Forex. The Forex market is actually the largest marketplace you can ever find in the world. The currency market eclipses the stock exchange market several times over.