The foreign exchange market is the collective term for the sum of all trading of international currencies between banks, specialist foreign exchange traders and other entities, and enables currency conversion.

For example when an American consumer wishes to purchase French wine, he needs to convert his USD into euros, and this is made possible through the forex market.

The forex market also serves as a platform for direct speculation (betting) on the value or direction of currencies, and specific investment strategies (see carry trade, momentum trade, value trade).