The simple definition of FOREX is buying and selling (trading) of currencies at market prices. The term FOREX is actually the combination of two words "FOReign EXchange".
There is actually a group of banks that formulates FOREX financial market. This group of banks actually buys and sells currencies on daily basis during five business days a week, and the daily turn-over of their trades is more than three billion dollars.
Generally, people misunderstand the FOREX market and mix it up with an exchange. But in fact, this concept is not true because this financial market does not have any physical address like New York Stock Exchange or London Stock Exchange. The trades in FOREX financial market are conducted 24 hours a day (five days a week), so you can always trade your favorite currencies.
Traders have the option to trade through FOREX trading terminal, some specifically build software and even over the telephone. This is absolutely great advantage for those who have the ability to earn money through trading currencies, because all you need is a computer with an Internet connection and appropriate software. Since FOREX is a 24-hour market, so you can work from anywhere in the world, any time of the day five days a week.