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The Benefits Of Forex Trading How does foreign exchange trading work? the balance. Its average daily trading volume is more than $3. 2 trillion. compare that with the new york stock exchange, which only has an average daily trading volume of $55 billion. in fact, if you were to put all of the world's equity and futures markets together, their combined trading volume would only equal a quarter of the forex market. Forex contracts involve the right to buy or sell a certain amount of a foreign currency at a fixed price in u. s. dollars. profits or losses accrue as the exchange rate of that currency fluctuates on the open market. it is extremely rare that individual traders actually see the foreign currency. Foreignexchangetrading was once something that people only did when they needed foreign currency to use when traveling in other countries. this involved exchanging some of their home country's currency for another at a bank or foreign exchange broker, and they would receive ...