What is Forex Trading?

Forex Trading, also known as foreign exchange trading, includes the exchange of national currencies in the global marketplace. It involves general aspects of buying and selling in a market, and the currencies exchanged between different parts of the world.

As it works globally, its activities are not owned or controlled by a single authority. It has a decentralized structure where multiple banks, institutions, and governments are involved from various parts of the world.

Forex Trading is mostly done to earn profits due to the different relative values of currencies in different countries. For example, one may buy dollars during its fall in Indian currency and sell the same during inflation of the Indian currency market, thus making a profit.