Forex is in layman’s term trading of foreign currencies in order to make profits.
Automatic forex traders make use of the volatility in prices of foreign currencies exchange rates and try making profits by trading small amounts on regular basis. Let’s say a trader bought 100 units of currency X in the morning for 1000 units of currency Y and by due to price changes by the evening that 10 units of currency X costs 50 units of currency Y more. That means the trader gained a profit of 50 currency Y units by the evening whereas the total currency change was of only .5 units. That’s not much. But if invested systematically and in large sums profits are huge.
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