The Forex market, also known as Fx market, or Currency market, or Foreign exchange currency market, or Foreign currency market is the common global platform where the bank, businesses, government, investors and traders deal in currencies by exchange or speculation. Exchanging currency is very important for the countries to carry on the foreign trade and businesses
So, forex trading refers to the buying and selling of currencies in the Forex markets with the intent of making profits. For example: If you think that GBP will become strong against USD in the near future, then you can buy GBP at low prices and sell it when it becomes strong. But, you can also lose your money if the USD goes strong against GBP. This is also called Speculative Forex trading which is very risky also if your assumptions do not go right.
The best thing about the forex trading is that there is no dedicated marketplace for foreign exchange. You can conduct the trading electronically over the internet with the traders located around the world on one centralized exchange platform. The currencies are majorly traded worldwide through one of the financial centers located in New York, London, Hong Kong, Sydney, Paris, Tokyo, Zurich, and Frankfurt.