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Forex trading, also known as foreign exchange trading, involves buying and selling different currencies. It's the largest and most liquid financial market globally. Traders speculate on the fluctuations in exchange rates to make a profit. For instance, if you believe the value of the US dollar will rise against the Euro, you would buy USD and sell EUR. When the USD strengthens as predicted, you sell the USD and buy back the EUR at a higher rate, pocketing the difference.