Cash out refinance forex is a trading strategy that involves taking advantage of different exchange rates in order to bring in extra profits. Traders use this strategy by buying currency in one currency pair and selling in another. For example, if the euro/U.S. dollar exchange rate is at 1.08, a trader would purchase euros and sell them for U.S. dollars to profit from the higher exchange rate. By making small investments into multiple currencies, traders can spread their risk, diversify their portfolio, and increase their returns. Furthermore, cash out refinance forex can be used to take advantage of price differences between different currencies during periods of high market volatility, when currencies are moving up or down.