Foreign Exchange, otherwise known as currency trading, is the trading of one currency for another. For example, one can swap the U.S. dollar for the euro. This article will break it down in simple terms and provide analysis that I hope you find helpful so you too can make money from foreign exchange.Foreign exchange is the trading of one currency for another. For example, one can swap the U.S. dollar for the euro. One way to think about foreign exchange is as an investment — you purchase or sell a certain amount of one currency for another currency to make a profit.In the macroeconomic world, foreign exchange (or forex) is the business of exchanging currencies. The forex market is comprised of many participants and transactions. Currency traders are driven by news, macroeconomic factors and political events that impact the value of one currency against another.