The foreign exchange market, which exchanges approximately $850 million every second, is the largest financial marketplace in the world and has a daily trading volume of $7.5 trillion. Previously, banks and financial institutions were the only ones who could trade in this massive market, but online trading platforms have opened up the opportunity for individual investors to try their hand at currency trading. To profit from changes in their relative values, forex trading entails simultaneously buying and selling currencies. For example, suppose you think the euro will strengthen against the U.S. dollar. In that case, you might buy euros and sell dollars, aiming to sell those euros later at a higher price. Thus, forex trading is about anticipating and capitalizing on these currency value shifts.

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