Forex trading, or FX trading, is the process of buying and selling different currencies with the aim of making a profit. Forex traders use the fluctuations in exchange rates between pairs of currencies, such as EUR/USD or GBP/JPY, to speculate on the direction and magnitude of price movements. Forex trading is one of the largest and most liquid financial markets in the world, with an average daily volume of over $6 trillionAd1. Forex trading can be done through online platforms, brokers, or banks, and it is open 24 hours a day, five days a week, except for holidays.
Forex trading is a challenging and rewarding activity, but it also involves a high level ofrisk and uncertainty. Therefore, it is important to have a clear understanding of the forex market, its mechanisms, its participants, and its strategies before engaging in forex trading.

As a forex trader, you are speculating on whether one currency willrise orfall in price against another currency. So “forex trading” can be defined as the process of speculating on currency prices to try and make a profit. The value of a currency is influenced by economic, political, geopolitical events, and trade and financial flows.
Placing a trade in the foreign exchange market is simple.The mechanics of a trade are very similar to those found in otherfinancial markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly.The objective of forex trading is to exchange one currency for anotherin the expectation that the price will change.