To put it very simply, currency trading is a way to profit from the rise and fall in the values of the different currencies of the world. One currency is constantly changing in value in comparison to another. So you can make money by exchanging a falling currency for a rising one.In practice, you will work with a pair of currencies, which might be the US dollar and the euro, known as the EUR/USD pair. You will watch how the price of this pair changes according to which of the two currencies is perceived to be strengthening and which one is weakening. Then you buy or sell the pair to profit from the change.
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Anybody can get into foreign exchange trading these days. Once, it was true, that it was almost exclusively the province of the international banks and financial institutions, and Forex traders worked out of Wall Street and the other major financial centres of the world.This has all changed now with the rise of the internet. Almost all trading is done online, so it can be done from anywhere. You don't have to be on a trading floor in a major city. Traders can work from their offices or from home. Individuals can set up as traders too, controlling their own account through their broker's software platform via the internet.One definition of the liquidity of a commodity is that it is a measure of how easily it can be converted to cash without affecting the value. Currencies are already cash so currency is more liquid than any other commodity.