The Objective of Trading on the Forex

Exchanging currency or crossing currency occurs when an investor or individual wants to trade the currency of one country for another. Currency crossing is the major objective of trading on the Forex. For instance, if a business or investor has UK pounds sterling and needs to trade those into Japanese yens, a broker would do this on the Forex. A lot of investors trade currency to make a profit. When a certain type of currency is purchased at a low exchange rate, the currency can be sold once the rate increases to turn a profit.