Forex trading involves buying one currency while simultaneously selling another currency. Currencies are quoted in pairs, such as USD/EUR, with the first currency being the "base" currency and the second currency being the "quote" currency. The exchange rate reflects how much of the quote currency is needed to purchase one unit of the base currency. Traders speculate on whether a currency will strengthen or weaken against another currency and profit from changes in exchange rates by buying low and selling high or selling high and buying low. The forex market operates globally, 24 hours a day, five days a week, allowing for continuous trading opportunities based on market movements and economic developments.