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Why Trade Forex?

Foreign exchange trading, or forex, is the exchange of funds in one currency for another.

I have dollars and I trade them for euros – that is a forex trade. If I take 10 dollars, and I exchange them for 8 euros, and the euro becomes worth more in dollar terms, so that I exchange them back for 12 dollars, then I’ve made a profit by trading forex.

And that’s why people do it.

The value of currencies changes constantly, due to events in world politics, macroeconomics, and world business. The common goal of forex traders is to profit from these changes in the value of one currency against another by actively speculating on which way currency prices are likely to turn in the future.

Trading forex has a lot of advantages: