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What is forex? Forex (also known as FX) is simply shorthand for “foreign exchange”, which is the trading of one currency for another A forex trader speculates on the price movements of one currency against another with the aim of making a profit
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Forex traders look to profit from fluctuations in the exchange rates of currency pairs So, if you think that the US dollar is going to strengthen against the Japanese yen, you might buy EUR USD to capitalise on the move EUR USD example EUR USD is trading at 1 3010 You buy €10,000 for $13,010 EUR USD moves up to 1 3110
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