Forex trading involves a network of buyers and sellers who transfer currency between each other at an agreed price. This network includes individuals, companies and central banks. When you travel abroad you usually make forex transactions. A lot of foreign exchange is done for practical purposes, but the purpose of most currency conversion is to earn a profit.
The amount of currency conversion that takes place every day can make currency price movements extremely volatile. This volatility is what makes forex so attractive to traders as there is the potential to make high profits while also increasing risk.
