Currency trading occurs whenever one currency is being traded to another currency. It is also called as Forex, FX, Foreign Exchange or Currency Exchange. There is a set price when trading currencies known as the exchange rate. This is a market where many people have reaped huge profits, although there are some who have forayed into this high risk, high-profit market and came out with only the shirt on their backs.
So far, foreign exchange or currency exchange markets are considered to be the world’s largest market in terms of trading cash values. The trading occurs between large banks, multinational corporations, governments, central banks, and other financial institutions and markets. However there are small speculators or retail traders which are part of this market but only in small percentage. They are participating indirectly through brokers or banks but are prone targets of forex scams.