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Forex market is the market in which there are majority currency pairs which are bought or sold. In this the person who thinks that the currency is going to appreciate will buy the currency pair, the people who think that the currency would depreciate would sell the currency pair. This market is easier then comparison to other financial markets as there are limited factors which are supposed to be kept in mind while doing the trading.
Forex was primarily the domain of large financial institutions, multinational corporations, and hedge funds. However, times have changed: the U.S. Dollar (USD) recently fell to record lows. Unlike the trading of stock, futures, or options, Forex trading does not take place on a centralized exchange, but instead through different Forex brokers.
As we see it, FX, Forex or Foreign Exchange, is technically about exchange of currencies from one hand to another at an ongoing price in the market. A common myth is that investing is expensive, but Forex is all about investing some part of your investment in foreign currencies, just to make profit by selling when the conditions are favorable and again to buy another one at a lower price.