Forex trading is legal and commonly referred to as “currency trading.” When someone invests in a company or another financial product in order to sell or trade that particular asset at a higher price, they are essentially gaining currency. Users can buy and sell currencies electronically using a software platform and if an investor uses the right strategy, they can make money.
Some investors will use leveraged positions (a higher proportion of cash for trades than what is required for standard positions). This stance traders usually have does carry more risk given their exposure to margin calls. There are many factors that affect forex pair prices on the world market such as political dynamics between countries.