Leverage allows traders to control a large position with a small amount of capital. For example, 1:100 leverage means you can control $10,000 trade with just $100.
Traders exchange one currency for another, aiming to profit from fluctuations in currency values. Transactions occur over-the-counter (OTC) or through brokers on trading platforms.
Forex trading is the process of buying and selling currencies to profit from changes in their exchange rates. It takes place in a decentralized global market, open 24 hours a day, five days a week.