The Forex trading industry is rapidly gaining headway as many hobbyist investors and professional investors alike are lured in by the breakneck speed and instant results. While the underlying mechanism of Forex trading is somewhat simple, in practice the market is very complex. It is important to understand Forex trading before you get involved, as it is a market that moves quickly. A poor investor can lose everything in a matter of minutes, not days like in the stock market.
To understand Forex trading, consider the fact that you've probably already engaged in a Forex trade on your own without realizing it. Forex stands for "foreign exchange," and it's what occurs any time money in one denomination is traded to another denomination. Let's discuss the most common scenario for a Forex trade. Consider that you're travelling to another country for a vacation, and you find out that currently one US Dollar (USD) is worth two of the Other