FX stands for foreign exchange. It refers to the decentralized foreign exchange markets all around the world. Individuals and organizations can participate in the foreign exchange markets by buying or selling one currency against one another. Therefore, currencies in the FX market exist in pairs. For example, you buy the USD against the Japanese Yen (USDJPY) or buy the Euro against the New Zealand dollar (EURNZD).
The FX markets include spot exchange rates, future exchange rates, and derivatives such as options contracts and swaps. It is the largest and most liquid market in the world. Trillions of dollars’ worth of currencies are exchanged daily in the forex market, according to the Bank of International Settlements...