Chances are, you've probably come across the term Forex at some point during the last decade. In case you were wondering, Forex stands for Foreign Exchange; in other words, the trading of various currency pairs, for example, EUR/USD

The goal is to buy the currency that is gaining value and sell the currency that is losing value in order to gain a profit from the changes in their values.
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The first currency in the pair is the currency you are buying or selling, while the second currency is the currency you are putting against it.

For example:

If you buy EUR/USD then you are buying the EUR and selling the USD. This means if the EUR gains value against the USD, you make a profit from that fluctuation in the price.

Alternatively, if you sell EUR/USD then you are selling the EUR and buying the USD, in which case if the EUR loses value against the USD, you make a profit from that fluctuation in the price.

💡Tip

Economic news usually causes volatility in the Forex market, so try to keep an eye out for major announcements from central banks or key economic indicators such as the NFPs (NonFarm Payrolls).