Foreign exchange, or forex, is the marketplace for money. Currencies increase and decrease in value like stocks and commodities because international trade results in trillions of dollars of currency conversions every day. Changes in demand for currencies cause them to rise and fall. Learn forex and you can profit from changes in the market.
Unlike other assets, currencies trade in pairs. This is because it's impossible to simply buy a currency also; you need another currency to buy it with. Currency pairs are represented with the base currency first and the relative currency second. If EUR/USD is up, that means the euro has risen against the U.S. dollar. If GBP/JPY is down, that means the UK pound sterling has fallen against the Japanese yen. If you think a certain currency is going to fall, you need to pick a relative currency to sell it against.
