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Watch Forex Trading learning videos the easiest way to understand all ins and outs of currency trading. The Forex Video Education is so simple you will be ready to start Forex Trading right away. Make your first step to Forex Trading now Below.

What is Forex?
The word 'Forex' comes from shortening the phrase 'Foreign exchange' that is used as a name for international interbank currency market. The new Jamaican currency system having replaced Bretton Woods system, rates of many national currencies were no longer dependent on the gold reserves of a particular country. The laws of supply and demand so typical for market economy started to influence the price thus inevitably leading to a new trend called 'floating rate policy'.

Heard of Forex, FX, Currency Trading or Foreign Exchange? Curious to know what they really are? Each of these terms refers to the buying and selling of foreign currency. Watch FXCM's 'What is Forex' video to get a better understanding of what the forex markets are, how they work, how traders trade in them and what resources FXCM offers.

Forex refers to the foreign exchange markets and the buying and selling of currencies. Every day, an average of more than 3 trillion transactions takes place in the forex market. Each of these transactions plays a vital role in establishing a currency pair's exchange rate.

When a traveler visits a new country, or when an international business pays it's foreign employees they each convert their local currency into foreign currency. Over time these transactions cause a shift in the exchange rate. When money flows into a currency, it strengthens, and when money flows out of a currency, it weakens. These shifts in value are what gives life to the forex market.

Forex traders attempt to predict the direction of an exchange rate just like stock traders try to predict the direction of a company's stock price. Forex traders buy a currency pair when they think the exchange rate will increase. And sell a currency pair when they think the currency pair will decrease. And as a global market, they can do this 24 hours a day, 5 days a week.

Forex traders attempt to predict the direction of an exchange rate just like stock traders try to predict the direction of a company's stock price. Forex traders buy a currency pair when they think the exchange rate will increase. And sell a currency pair when they think the currency pair will decrease. And as a global market, they can do this 24 hours a day, 5 days a week.

To try your hand at the forex market, open a free 50,000 dollar practice account today.
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Forex for Beginners What is Currency Trading How to make money online

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