Basics of Forex trading

More and more people are becoming interested in finding out about Forex trading which has the potential to make large amounts of money in a matter of minutes. Though the workings of it can be quite complexed, with experience one can master the art of this very profitablel trade.

Forex is short for “foreign exchange” and a trader will exchange foreign currencies for a profit. Until recently Forex trading was done between big banks and large companies. The demand for retail Forex grew as a result of the widespread use of the internet which led to the creation of many online Forex trading sites which act as a broker for traders.

The Forex market is a worldwide 24 hour 7 days a week market. Trading is done in currency pairs such as US Dollar and the Euro where the trader will be buying US Dollars and selling Euro with the difference measured in “pips”.

Close monitoring of world affairs both political and financial and especially reports of interest changes in countries, unemployment reports, GDP reports, monetary and fiscal policies, need to be followed closely in order to be a successful trader since all these have a direct impact on the currency market.