Currency trading, also known as forex trading, involves buying and selling different currencies in the foreign exchange market. Traders aim to profit from changes in currency values, which can fluctuate due to various factors like economic news, interest rates, and geopolitical events. For example, if a trader believes that the Euro will strengthen against the US Dollar, they might buy Euros and sell Dollars.
The forex market operates 24 hours a day, allowing traders to engage in transactions at any time. It is the largest financial market in the world, with trillions of dollars traded daily. Successful currency trading requires knowledge, strategy, and careful analysis of market trends.