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Forex, FX or Foriegn Exchange Market is a network of the largest financial institutions in the world such as central banks, commercial banks. and other financial institutions, corporate customers and brokers, where foriegn currency is bought and sold.

Daily trading in traditional Forex is very large and was estimated at USD 1.5 trillion in 1998.

The four largest Forex Centers in the world are London. New York, Tokyo, and Singapore. Usually trading is brisk in north America mornings,or afternoons in Europe due to both markets being open at the same time and usually due to new US economic data being released.

The Forex markets regulary trade a very wide range of currencies, however the majority of transactions are in five major currencies: the US Dollar, the Euro, British Pound, the Yen and the Swiss Frank. The greatest number of currency trades are made against the US Dollar.
 

Futures:
The principal of buying and selling for future delivery has characterized the markets for over a century and a half in physical commodities, mainly metals and staple foodstuffs. it has also been the feature of the foriegn exchange markets,where prices can be agreed today for foriegn currencies and other financial instruments that can be delivered in the future.

Financial Futures Markert are markets in which participants can fix the price they eill pay or recieve for bonds, shares and currencies and other financial products, in the future (effectively the parties thus "lock into" a known exchange rate/price). Futures prices arrived at through competitive bidding are immediately and continuously relayed around the world by wire and satellite.

Trading is made buying or selling future contracts which are standarized according to the quality, quantity and delivery time and location for each commodity. A futures contract is specified with the month during which the delivery or settelment is to occur i.e. if the product is gold and delivery is in July then the price quoted is for July Gold.

There are at least three types of participants in futures market, the one that wants physical delivery, the hedger who wishes to protect him self against adverse movement in prices and the speculative investor.

The speculative investor has no intetion of making or taking delivery of the commodity but, rather, seek to profit from a change in the price. That is, investors buy a product when they anticipate rising prices i.e buying long (and sell that product later at the higher price),or sell a product when they antivipate declining prices i.e. seeling short (and then buy that product later at the lower price).