How does forex make you money?

Forex profits from buying low and selling high (or shorting high to low) on currency pairs. EUR/USD at 1.1000: buy expecting rise to 1.1050 nets 50 pips. Leverage amplifies: $1,000 at 1:30 controls $30k, so 50 pips = $150 profit. Wins compound; losses compound faster without stops. Edge comes from trends, news, technical patterns—not random guesses.