Examples of speculation in foreign exchange?

Suppose you think that the Euro will increase in value against the US Dollar. You can go long one standard lot size (100,000 units of base currency) of EUR/USD currency pair @ 1.21000 with a retail forex broker. You are anticipating that that the Euro will increase to 1.22000 (100.0 pip increase).

You could optionally set what is called a Take Profit order which would be a limit or pending order to exit the market when the prevailing market prices touch 1.22000. This would give you appx $1000 profit. If you wanted to limit your losses, you could place a stop loss at 1.20000 (100.0 pips away from entry). Then you could walk away from your computer for a couple of days or weeks at a time and see what happens, although typically you'll want to check in once a day or so if you have internet access.

There are much more sophisticated examples, (trading multiple pairs simultaneously, correlated vs non-correlated pairs offsetting, using grid/basket trades with multiple orders etc) that would take too long to discuss. AwarenessForex helped develop famous APAMI indicator that allow you to measure price action with 100% objectivity, assisting greatly with consistent price entry. The majority of other methods average or smooth price action, which creates distortion.