How to Make Money Trading Forex Partner Center Find a Broker How does forex trading work? In the forex market, you buy or sell currencies. Placing a trade in the foreign exchange market is simple. The mechanics of a trade are very similar to those found in other financial markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly. And if you don’t, you’ll still be able to pick it up….as long as you finish our School of Pipsology! The objective of forex trading is to exchange one currency for another in the expectation that the price will change. More specifically, that the currency you bought will increase in value compared to the one you sold. Example: Trader’s Action EUR USD You purchase 10,000 euros at the EUR/USD exchange rate of 1.1800 +10,000 -11,800* Two weeks later, you exchange your 10,000 euros back into U.S. dollar at the exchange rate of 1.2500 -10,000 ...