Forex has been around for quite some time, they and fapturbo used to only cater to the very wealthy. The market was acting upon the whims and orders of large banks and stinkingly rich individuals.

Internet has virtually opened up these hitherto rare opportunities to investors. Many Forex trading tools have been released to aid you in your training.

First though you should know exactly what trading in the currency markets entails and have some basic knowledge before you get started. Many investors are challenged and overwhelmed, when they explore new markets without prior expertise.

This can lead to some very steep losses. Many people that thought they knew the market system had a great loss in their retirement accounts when the economy bottomed out. You do not have to go through the suffering like everybody else.

So what are some basic facts about the Forex market?

1. It’s open 24/7 and year-round.

2. Over US$2 trillion in transactions are conducted in every 24 hour period making it the largest market on earth

3. Due to this incredibly high volume it’s virtually impossible to corner or move the market or matter what how big the size of the transactions you’re able to do.

4. Also due to the huge size it is the most liquid market on earth so when you want to get out and exit a trade you can do so almost instantaneously

5. Setting up an account is basically the same as setting up a stock trading account like you would normally do at any other brokerage

Which currencies can be bought or sold in Forex?

Trading is done in basic pairs for the predominant currencies such as the US, Australian and Canadian dollars as well as; the Euro, the Yen (Japan), Franc (Swiss) and the British Pound.

This is something that is unique to the foreign currency market in that the currencies are basically paired up.

The seven basic pairs are as follows:

1. The US dollar/Euro

2. The US dollar/Japanese yen

3. The US dollar/British pound

4. The US dollar/Swiss Franc

5. The US dollar/Canadian dollar

6. The US dollar/Australian dollar

7. The US dollar/New Zealand dollar

The statistics support the claim that over 70% of trades are conducted in the US/Euro dollar pairing. Trades are done in what is called pips which is one of the jargon terms that is unique to the Forex market space. This is the smallest unit or increment a currency pair can trade in.

For example, you have probably seen some of the quotes that you can buy one euro for $1.53 US. This would be the Euro/USD dollar pair. So if you were to trade 10 pips of this pair then you would be able to get €10 for a price of $15.30 US.

Then of course you would be hoping that the euro would rise against the dollar so that when you went to sell your €10 you could get say $16 US for them which would leave you a profit of $.70 US.

The standard transaction size in forex, aka 4x, is 100,000 units of the base currency of the country that you live in. 10,000 unit of your base currency constitutes a mini transaction while 1000 units is a micro-transacation. To be able to trade in these smaller lots you have to have a specialized and specific Forex account which is either a micro-account or a mini account.

Forex gives you the concession of massive leverage but you should be extra-careful while handling it. When the trade goes your way you make a tremendous amount of money with only a little bit out of your pocket. If the trade is against you, even if you put a little out of your pocket, your loss may be huge.

You should be careful of risking your own money in the market place, however starting on your Forex education is a step in the right direction