Forex trading, also known as foreign exchange trading, is the act of buying and selling currencies with the goal of making a profit from the fluctuations in their exchange rates. In simple terms, forex traders speculate on the price movements of different currencies against each other, with the aim of buying low and selling high.
Forex trading is a decentralised global market where currencies are traded 24 hours a day, five days a week. The forex market is the largest and most liquid financial market in the world, with a daily trading volume of over $5 trillion.
Forex traders can participate in the market through a forex broker, who acts as an intermediary between the trader and the interbank market. Traders use different strategies, tools, and techniques to analyse the market and make trading decisions, including technical analysis, fundamental analysis, and price action analysis.
Forex trading involves risks, and traders must manage their risks through the use of stop-loss orders and proper position sizing. However, with proper knowledge, skill, and discipline, forex trading can be a potentially profitable venture.