Currency Trading Basics
Currency trading, also known as foreign exchange (forex) trading, is the buying and selling of currencies with the aim of making a profit from changes in their exchange rates. This type of trading is typically done through an online platform that connects traders with the global currency market.
Currencies are traded in pairs, with one currency being exchanged for another at an agreed-upon exchange rate. For example, in the EUR/USD currency pair, the euro is the base currency and the US dollar is the quoted currency. Traders can profit from currency trading by buying a currency pair at a lower price and then selling it at a higher price, or by selling a currency pair at a higher price and then buying it back at a lower price.