Currency trading, also known as foreign exchange trading or forex trading, is the act of buying and selling currencies. Currency trading is done in pairs, with each currency being traded against another.

Currency trading is a popular form of investment because it offers a high degree of flexibility. You can trade currencies online 24 hours a day, five days a week. For example, the EUR/USD currency pair is the euro against the US dollar. When trading currencies, you are effectively betting on the movement of one currency against another. And, because the foreign exchange market is so large, there is always liquidity, which means you can always buy or sell a currency pair at a reasonable price.