The foreign exchange market, also known as forex or FX, is a global decentralized or over-the-counter market for the trading of currencies. It is the largest financial market in the world, with currencies trading against each other as exchange rate pairs. Forex markets exist as spot (cash) and derivatives markets, offering forwards, futures, options, and currency swaps. The spot market is the largest of all three markets because it is the “underlying” asset on which forwards and futures markets are based. Forex trading is the conversion of one currency into another. Forex traders are attempting to buy currencies whose values they think will increase relative to other currencies or to get rid of currencies whose purchasing power they anticipate will decrease. Forex trading is primarily done via spot, forwards, and futures markets. The FX market is the only truly continuous and nonstop trading market in the world. The forex market is open 24 hours a day and 5 days a week, only closing down during the weekend. The forex market is driven by the forces of supply and demand, and it is important to gain an understanding of the influences that drive these factors.