In relation to foreign exchange rates, FX is the abbreviation of forex. The Forex is a financial market where all currencies of the world are traded. It is the most liquid and by far the largest market in the world in terms of cash traded.
The market determines the relative value of different currencies. It operates around the clock except on weekends. There is no central marketplace for currency trading; it is an over the counter trade conducted in financial institutions such as banks and forex bureaus. The foreign exchange market facilitates international trading and investment by enabling currency conversion.