Currency trading is when you attempt to generate a profit by speculating on the value of one currency compared to another. Foreign currencies can be traded because the value of a currency will fluctuate, or its exchange rate value will change, when compared to other currencies. Online currency trading without a strategy is to rely entirely on chances for your success or failure.

When trading in markets, it is often beneficial to have a strategic approach. While the concept of trading on hunches and whims – and being profitable doing so, may sound attractive; in practice it is much more difficult and far less likely than if one had a formulaic approach with which they look to speculate in markets.