How do you trade currency?

Is trading currency the same as buying/selling of stocks?

As for stocks, for instance, if you buy a share for $2. If the value of the share rises to $3, and then you sell it immediately, earning a $1 profit.

What about trading currency? How do you do it? Sorry, I'm having currency problems because it puzzles me in terms of... for instance trade the Australia currency for US Dollar and then trade back again for profit.

Please show me an example. Thanks.

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