Currency exchange market or Forex is the buying and selling of instruments on the forex market. Forex (or FX) is short for foreign exchange and is the largest financial market in the world. It’s where private, retailers and government institutions convert one currency to another with the aim of gaining from the change of its value. Currency prices are influenced by a range of different factors, including interest rates, inflation, government policy, employment figures and demand for imports and exports. Due to a massive volume of currency traders and the amount of money exchanged, price movements can react to news and events very quickly, making currency trading not only the largest financial market in the world but also one of the most volatile.