what is forex trading?

The foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.The equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined.Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.The Forex Trading to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets.