Currency Trading is the buying and selling of currencies in the global foreign exchange market (forex). This type of trading involves taking advantage of changing exchange rates to make profits. Currency traders trade both the major world currencies as well as the exotic currencies found in emerging economies. Currency trading is a speculative endeavor and carries with it a high level of risk. Before trading currencies, it is essential to gain an understanding of the various trading strategies, market conditions, and risk management tools available to maximize gains and minimize losses.