Forex is short for Foreign Exchange. If you’ve exchanged your local money for another country’s money in a forex bureau, then you participated in foreign currency exchange.
All kinds of trade involve the exchange of something. A restaurant will exchange a plate of food for the $25. In the currency market, you exchange money of one country for another country’s money for a profit when the prices of these currencies change.
Forex trading is the act of buying or selling currencies. Banks, central banks, corporations, institutional investors and individual traders exchange foreign currency for a variety of reasons, including balancing the markets, facilitating international trade and tourism, or making a profit.