Forex Trading

What is forex trading?

Forex Trading is trading currencies from different countries against each other, often referred to as forex.

How You Earn From Forex Trading
As a forex trader you can choose a currency pair that you expect to change in value and place a trade accordingly. For example, if you had purchased 1,000 Euros in January of 2010, it would have cost you around $1,200 USD. Throughout 2010 the Euro’s value vs. the U.S. Dollar’s value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to end your trade at that point, you would have a $100 gain.

How is the Forex Market Different?

There are some significant differences between the forex market and others like the stock market. While it may be the feeling that a good trader should be able to handle any market, the fact of the matter is that some structural differences in forex can require a different trading approach.


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