Foreign exchange, or foreign exchange, refers to the global market where currencies are traded. It is the largest and most liquid financial market in the world. Forex trading involves the simultaneous buying of one currency and selling of another, and currencies are traded in pairs, such as EUR/USD (Euro/US Dollar) or USD/JPY (US Dollar/Japanese Yen). Forex trading occurs over-the-counter (OTC), meaning that it takes place directly between parties without a central exchange. The market operates 24 hours a day, five days a week, due to the different time zones across major financial centers in the world. The forex market is decentralized, meaning that it doesn't have a physical location, and it is conducted electronically over-the-counter, which means that all transactions are carried out via computer networks between traders around the world.