Forex trading, short for foreign exchange trading, is the act of buying and selling currencies in the global foreign exchange market with the aim of making a profit from changes in currency exchange rates.
In forex trading, participants exchange one currency for another, often in pairs such as EUR/USD (Euro/US Dollar) or GBP/JPY (British Pound/Japanese Yen). The objective is to speculate on whether the value of one currency will rise or fall relative to the other. Traders make profits by buying a currency pair when they anticipate it will appreciate and selling it when they expect it to depreciate.
