currency trading

Definition

The act of buying and selling world currencies. Currency trading is most often engaged in by banks and other institutions, for the purposes of international trade. Individual investors may engage in currency trading as well, attempting to benefit from variations in the exchange rates of the currencies.

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The currency trading strategy was based on analyzing political events in the region and speculating based on that information going forward.

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The digital revolution has given rise to hoards of retails investors hoping to make large returns in the highly leveraged world of currency trading.

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Most banks around the world need to participate in currency trading because world travelers often need to exchange their currency from their home country to the currency of the country they visit.

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