FX trading is a form of trading using the foreign exchange market. This is the largest financial market in the world, offering the potential for high profits and losses for those active in the trade. Traders use different trading strategies to research, analyze and come up with the best possible outcomes. Currency pairs, leverage and risk management tools are used to increase the return on investment. Professional traders may use automated trading software to ensure they stay up to date with market conditions and to help increase their profits. With education, practice and risk management, you can be a successful FX trader.