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What is Forex Trading?

Forex, or foreign exchange trading, is trading in currencies, e.g., buying US dollars by paying Indian rupees. We need foreign currency in order to pay for imports, and the foreign currency we get by selling exports also needs to be channeled efficiently.
In order to have enough currency to pay for necessary imports governments, central banks, commercial banks, firms, brokers, forex dealers, and individuals participate in the buying and selling of currencies as well as the loaning, hedging, and swapping of currencies.