What is Forex Trading?

Forex trading (foreign exchange trading) is the buying and selling of currencies to benefit from price movements. Currencies are traded in pairs such as EUR/USD or GBP/USD. When one currency strengthens or weakens against another, the pair’s price moves.

The forex market operates 24 hours a day, five days a week. Prices move because of economic announcements, interest rate changes, geopolitical events, and market sentiment. This means opportunity exists — but so does risk.

Successful traders typically focus less on predicting every move and more on managing risk. This includes position sizing, limiting exposure, and using buffers so short-term volatility doesn’t force emotional decisions.