Forex Trading started as a regular way of exchanging money between people and nations, but today traders take advantage of the changes in value among currencies through the markets. It is very common to see a trader who suspects that the value of the Euro will go up against the yen or the dollar and follow the old axiom of “buy low and sell high”. The way to do it is by using margin trading. Margin trading is a way for a trader who doesn’t have all the money in an account that is being traded. If a trader has 10,000 and works with a one percent margin, he is able to trade $1,000,000 in currency. This adds great leverage to the trade and makes forex trading very attractive to many who are looking for a large and quick return on their investments.

Traders are also charmed by the low costs associated with trading since most trades are without commission. The fact that there is a 24 hour trading cycle is also appealing to many. But it is important to remember that where there’s an opportunity - there’s also a risk. An aggressive trader may experience profit and loss swings of up to 30% in a day. This can be 30% to the good, or to the bad, so trading requires education and courage as well as capital.

Some nations in the past have complained about large institutions involved in the market saying that they have intentionally devalued their currencies to make quick profits. Whether it is true or not, (and if so - whether it should or should not be done) is not our issue. However, when institutions control such large amounts of money, the chance of manipulation does exist. As long as foreign currency is traded, there will be such accusations. However, the forex trading market remains a way to achieve substantial financial gain.

I Love the news today, oh boy!!! I had this huge forex investment and it looks like a winner. One of my long term deals looks like it’s going to bring me a few tens of thousands of dollars, and I really thank this friend of mine tipping me off like he did.

It turns out that he was conducting a research and he found out that every first 3 months of the year a certain currencies rate goes down, but not long after (2 months) it goes back up and goes even further more than where it started.

So I figured: why won’t I wait ‘till it’s the middle of March and then I’ll go long (terms you need to know from the forex world - it means buying the leading currency) even if it’s going down.

Regularly I don’t go against the trend but for some reason I had a good feeling about it - so I went long, and 2 days after the trend reversed (and the rate started going up - yeah). Now, for the past 3 months I’ve been running like crazy to the computer screen every morning, to see how my money’s doing, and I really have to tell you - I manged to get something like 25% ‘till now.

The only problem is that I don’t want to go out, at all, it’s too appealing to stay in and go 30, 35 or even 40% profit, but hey, I’m not too greedy, there’s always next year to do the same…

What is FOREX???!?!?!?!!?!?!

Foreign Exchange (FOREX) is the simultaneous buying and selling of a nation's currency for another. The foreign exchange market is the most liquid and largest financial market in the world, with the equivalent of over $1.5 trillion changing hands daily; more than all the major equity markets combined. Unlike other financial markets, the Forex market has no physical location or central exchange, but rather operates via an interbank market 24 hours a day through a global electronic network of banks, corporations, and individuals, spanning from one time zone to another in all the major financial centers, starting with Sydney and ending in New York. Approximately 80% of transactions take place between the US dollar, euro, Japanese yen, British pound, Swiss franc, and Australian and Canadian dollar.

The foreign exchange market was traditionally the domain of the major banks and international corporations. With the growth of online trading platforms and new regulations and policies, the Forex market is finally open to retail investors and smaller financial institutions.

To learn more about online Forex trading , get news updates , rules and tips

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