The term "Forex" stands for Foreign Exchange. The Foreign Exchange market is the place where currencies are traded. In simple words, forex trading is the trading in currencies from different countries against each other, for example US Dollar to British Pounds.
Forex is an unregulated market, also known as OTC(Over-the-Counter) and it is the biggest market with average daily turn-over that runs into billions. To invest in the market, it is very important to first understand the movement of the forex market. Most of the traders who fail in forex trading or made losses in the initial stage, without prior knowledge of how forex trading is done, call it a scam. When you are looking to trade forex, it is important to posses a knowledge of forex market, it's basics and the strategies. You must also know how to minimize losses in trading Forex and maximize profits.