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Forex trading is the simultaneous buying of one currency and selling another. Currencies are traded through a “forex broker” or “CFD provider” and are traded in pairs. Currencies are quoted in relation to another currency.
Think of buying a currency as buying a share in a particular country, kinda like buying shares in a company. The price of the currency is usually a direct reflection of the market’s opinion on the current and future health of its respective economy. In forex trading, when you buy, Japanese yen, you are basically buying a “share” in the Japanese economy.
Forex is the global financial markets that we can trading between different pair of currencies. If one currency is stronger than another and you believe it is right in the end, you can make a profit.