What is FOREX Trading?

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Forex Trading enables you to speculate and profit on the future direction of currencies by buying or selling the exchange rate of one currency against another. To Buy or to Sell? Lets look at the EUR/USD forex pair. If you believe the Euro will strengthen or appreciate against the US dollar -- or conversely that the dollar will weaken against the euro - you buy or go long, and your profits will rise in line with every increase on that price. If you believe the Euro will weaken or depreciate against the US dollar -- or conversely that the dollar will strengthen against the euro - you sell or go short, and your profits will rise in line with every fall on that price. If however the markets move against you, you will encounter a loss.