Forex trading is the act of buying and selling currencies with the goal of making a profit.
The foreign exchange (Forex) market is the largest and most liquid market in the world, with an average daily trading volume of over $5 trillion. In forex trading, participants buy one currency while simultaneously selling another, in the hope that the value of the currency they bought will increase compared to the currency they sold.
If the value of the currency they bought does indeed increase, they can sell it back for a profit. Conversely, if the value decreases, they will incur a loss. Forex trading requires a good understanding of economic and political events, as well as an understanding of the various factors that can impact currency values.
Forex trading is often conducted through a broker or market maker, and can be done on a part-time or full-time basis.
- What Is Forex Trading
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