LESSON 2. What is Forex trading?

So, what is Forex trading? Forex stands for foreign exchange and is used to describe trading in the currency market by investors and speculators…

So, what is Forex trading?

Forex stands for foreign exchange and is used to describe trading in the currency market by investors and speculators. 

Just like an investor can trade stocks or commodities, an investor can trade currencies and try to profit from the difference in the exchange rates between 2 countries’ currencies.

For example, if a trader expects the euro to strengthen against the US dollar, he will sell dollars to buy euros.

If the euro strengthens, he will then sell euros for dollars and thus increase the initial sum he has in dollars.   

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