Forex, or Foreign Exchange, is the simultaneous exchange of one country's currency for that of another. In the FX market, all currencies are traded in pairs, for example EUR/USD or USD/JPY. Traders are able to BUY or SELL currency pairs. If you BUY a currency pair, you are buying the first (base) currency in the pair and selling the second (quote or counter) currency in the pair.
A trader buys the pair if he believes the base (first) currency will appreciate relative to the quote (second) currency. SELLING the currency pair implies selling the first (base) currency and buying the second (quote or counter) currency. A trader sells the pair if he believes the base (first) currency will depreciate relative to the quote (second) currency.
On the Global Trading System, if the rate is rising, buyers are making money; if the rate is falling, sellers are making money. You can buy or sell any currency at any time, and thus can profit in any economic situation. To learn more about the basic aspects of trading currencies, including margin/leverage, spreads and rollover
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