A Little Bit On Something... :d

[Mayoush Rifai]

Before we start talking
about how we can make profit trading Forex, it'd be a good idea to define
precisely what we are talking about...



You probably have already made exchanges between several currencies. I, for
example, have often loaded a debit card in US dollars to withdraw at the ATM in
Euros. And each time, the final amount I am able to withdraw depends on the
value of the Euro compared to the US Dollar. 100 USD may not be worth the same
amount in Euros today and tomorrow...

Well the Forex market is exactly about this: the value of one currency against
an other... You buy or sell a currency depending on the value you expect it to
have compared to an other currency. These are called currency pairs.

QUOTE

Definition: The foreign
exchange (currency or forex or FX) market exists wherever one currency is
traded for another. It is by far the largest financial market in the world, and
includes trading between large banks, central banks, currency speculators,
multinational corporations, governments, and other financial markets and
institutions. The average daily trade in the global forex and related markets
currently is over US$ 3 trillion.

Important: Manual forex trading is a difficult activity. During your learning
period, ALWAYS trade on a demo account (where no real money is at stake). And
if you do not feel confident enough, or if you do not have the time to trade
seriously, have a look at the auto trading thread for some tools that do not
require you to trade by yourself.



All that I said above, it's just a small fraction of the entire forex basics
for a forex beginner.