What is Forex Trading?

Forex exchange is the biggest market in the world with trillions of dollars changing hands on a daily basis. The Forex market consists of speculating on different currencies that represent world economies in order to gain from their movement. As a trader, one looks to buy or sell currencies with the idea of making a profit if the direction of the currency is the correct one. For example, let’s assume that a trader believes that things are going to go wrong for the European Union now that the United Kingdom voted for Brexit., so the Euro as a currency should weaken. Naturally, in order to speculate on this belief, the trader will turn to the Forex market and sell the European currency.