Compounding profit in the forex trading industry involves reinvesting your earnings to generate larger returns over time. By letting your profits accumulate and adding them to your trading capital, you can increase the size of your trades and potentially amplify your profits. The compounding effect allows for exponential growth, as your capital grows, the potential for higher returns also increases. However, it's crucial to balance compounding with proper risk management to avoid excessive exposure. Consistency, discipline, and a long-term perspective are key to effectively harnessing the power of compounding in forex trading and maximizing your overall profitability.