The foreign
exchange market (currency, forex, or FX) is where currency trading takes place.
It is where banks and other official institutions facilitate the buying and
selling of foreign currencies. [1]FX transactions typically involve one party
purchasing a quantity of one currency in exchange for paying a quantity of
another. The foreign exchange market that we see today started evolving during
the 1970s when worldover countries gradually switched to floating exchange rate
from their erstwhile exchange rate regime, which remained fixed as per the
Bretton Woods system until 1971