What is forex trading

Forex trading is the buying and selling of currencies. When you trade forex, you are buying one currency with the hope that it will gain value and therefore you can exchange it for another currency whose value has fallen to purchase something in that country cheaper than if you had bought it using your original currency. In essence, forex trading is a form of buying and selling currency pairs (usually two major currencies) where the price of one currency is dependent on the price of the other. It is a speculative instrument, where traders can open and close positions at any time during the day. To buy and sell, you need to open an account with an online forex broker, for example, Icmarkets Trade or through a forex card. Forex traders take advantage of fluctuations in price which they predict before they happen.