Foreign exchange trading or FX trading

🌍 Global Market – The forex market is the largest financial market in the world, where currencies are exchanged 24 hours a day, 5 days a week.

💱 Currency Pairs – Trades happen in pairs like EUR/USD (Euro vs. US Dollar) or GBP/INR (British Pound vs. Indian Rupee). You’re essentially buying one currency while selling another.

📈 How Profit is Made – Traders try to make money by predicting whether a currency will go up or down compared to another. For example, if you think the Euro will strengthen against the Dollar, you buy EUR/USD.

⚡ Leverage – Forex brokers often allow traders to control large amounts of money with a small deposit, which increases profit potential but also risk.

🏦 Who Trades Forex? – Banks, financial institutions, companies, governments, and individuals (retail traders like you).

✅ Advantages – High liquidity, low starting capital, open 24/5, global access.

⚠️ Risks – High volatility, potential for large losses if not managed properly.

👉 In short: Forex trading is speculating on currency price movements to make a profit.

Would you like me to also explain with a real-life example of how a trade works so it’s clearer?