Final answer:
The Forex, or FX market, is the global marketplace for trading currencies and is the largest financial market, with $5.3 trillion traded daily as of 2019. It facilitates international trade and investment by enabling currency exchange.
Step-by-step explanation:
The Forex or FX market is the market where currencies are traded. It is the largest financial market in the world, with a vast amount of money being exchanged daily. In 2019, a Bank of International Settlements survey reported an astonishing $5.3 trillion traded each day in the foreign exchange markets.
For perspective, this amount dwarfs the annual real GDP of the United States in the same year, which was $21.4 trillion. The Forex market is essential for facilitating international trade and investment as it allows for the exchange of currencies.
It serves various clients, including central banks, investment firms, and individuals, who may engage in currency exchange for a wide range of purposes, such as hedging against risk, responding to international capital flows, or setting a hard peg for an exchange rate.