how do forex traders use foreign exchange 
forex traders buy and sell foreign currencies speculating what the price movement will be in either the short or long term future when a trader takes what is known as a long position he purchases a currency with the expectation that the price will rise and he can sell it back at the higher price for a profit alternately a trader who sells a currency or takes a short position believes that the price of that currency will drop and he can buy back the units at a later date paying less for them than he received to sell them traders can also trade on currency cfds in which they do not actually take ownership of the currency but they invest on the price movement of the currency pair 