What is the electronic currency exchange?

Individuals may trade the monetary unit of a country, known as currency, for another type of money. Investors and banks usually facilitate this process over the Internet, by using an electronic currency exchange. These electronic exchanges connect buyers and sellers of currency.
History
Originally, economies were based upon barter in which individuals would trade one physical good for another. Before 1917, central banks used gold as a reserve, but inflated money supplies created inflation, with the cost of everyday goods rising. Over time, banks traded currencies among each other, creating modern electronic foreign exchange markets.

Forex
The Foreign Exchange Market, or Forex, helps traders transfer their money from one currency to another.

Purpose
Financial institutions and businesses use Forex in order to convert one currency into another. Businesses located in different countries need the currencies of other nations in order to conduct their business.

Trading
Financial institutions exchange currency through online transactions. Individuals trade currency through online brokerages.

Size
Banks, investors and individuals trade more than $3 trillion of currency every day. As of 2010, foreign exchange markets dwarf all other markets.