The foreign exchange market is a global decentralized or over-the-counter market for the trading of currencies. Forex (FX) is the market where currencies are traded and the term is the shortened form of foreign exchange. Welcome to video #1 of Forex Trading for Beginners. Forex, also known as foreign exchange or FX trading, is the conversion of one currency into another. What is forex trading and how does it work? The foreign exchange (FX) market is a.