Foreign exchange trading, or forex, is full of both opportunity and danger for investors. Due to significant geopolitical uncertainty, this could be a very opportune time to trade currencies.

Forex trading is essentially trading currencies. The process involves simultaneously buying one currency while selling another in the hope of profiting from the changes in their relative values.

Forex involves trading one currency for another. For example, a person could exchange the U.S. dollar for the Japanese yen — or complete a forex derivatives trade that reflects the underlying ...