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Forex trading involves the buying and selling of currencies with the aim of profiting from fluctuations in exchange rates. Unlike stock markets, which have a central location, the Forex market is decentralized and operates 24 hours a day, five days a week, spanning across major financial centres worldwide.
Traders will buy one currency while selling another if they think that the price will rise or fall, hoping to make a profit based on those exchange rate movements. There are several common trading styles used in forex: Scalping — multiple positions held for very short periods, profiting on small price changes.