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 What is Forex Trading and How Does It Work? Forex is also known as "FX," which stands for "currency." Forex trading is the process of exchanging one currency for another in its most basic form. Forex trading, for example, is when you trade GBP for euros. It's worth noting that currency trading is one of the world's most liquid financial markets. Big banks, in reality, transact trillions of pounds worth of currency every day . One of the key reasons why the currency area has been approaching retail in the day trade sector since then is because of this. Most significantly, you may now buy, sell, and trade dozens of currencies from the convenience of your own home, or even on your mobile device. The underlying idea of forex trading is that you must predict whether one currency's value will rise or fall in relation to another. Currency trading is also based on a "pair" of currencies, which consists of two rival currencies. GBP / USD traders, for