When people talk about forex trading, they refer to the practice of trying to make a profit from changes in the exchange rate between two currencies. It's that simple.
Let's say that you have 10,000 US dollars, and you've just landed in Paris - the first stop for your trip to Europe, and you want to buy a train ticket from the airport to the city. Try going to the cashier and pay with US dollars (or USD). You'll find out it just doesn't work, they use a different currency in Europe, it called an Euro (and it's symbol on the trading screen is EUR).
So, in order to spend your 10,000 USD in Europe you will have to convert them into EUR. Let's say that 10,000 USD would buy you 8,000 EUR. Enjoy :). Now to complete our story, let my introduce you to your aunt, she's just retired and got a fat bonus. She's so happy you came to visit so she decided to pay for all of your expenses in Europe. 8,000 worth.
When you go back home to the US, you are left with 8,000 Euros in your pocket... and Euros pays for nothing in the US, right? so you wish to exchange you 8,000 EUR back to USD. By the time you got back from your trip the exchange rate fluctuated a bit, the USD gained value relative to the EUR, and your 8,000 EUR got you 10,500 USD. You've just traded the EUR\USD currency pair with the expectation that the USD will strengthened, and made a profit of $500.
That's forex trading in a nutshell.
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