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Traders are people who work on the Forex market, trying to ascertain the direction in which prices of a currency will go and make a trade for the purchase or sale of that currency. As such, by buying a currency cheaper and selling it for more, traders earn money on the Forex market. Traders make their decisions based on the analysis of all factors which can affect prices, allowing them to work out precisely in which direction the prices are moving. Profit can be made trading Forex on the fall in price of a currency, just as profit can be made on a rise in the price of a particular currency.
Source: alpari.com, "Forex Trading with Alpari: Dependability and Innovation in Trading"