Forex

So, what's a market? Simple, it's a place where goods are traded. Forex is no different, but with one little twist, the goods traded on Forex are the national currencies of the world. For example, on Forex you might pay in American dollars and buy some Canadian dollars or you could sell your Euros for Japanese Yen. There's nothing more to it than that. 

Again, the answer is obvious, just as with any market, you make money by buying low and selling high! Buy for less, sell for more! All you do is take advantage of fluctuations in the relative values of world currencies. Each currency's value changes every day in the currency exchange market. All you have to do is use these fluctuations to your advantage. 

One thing we'd like to mention about currency exchange on Forex, these daily fluctuations are actually 100 times greater than the actual fluctuation (for example, around 1%). 

Best of all, you don't risk losing anything more than your margin! There's absolutely no limit to your possible profits, but you never risk losing anything beyond what you originally invested. 

Also you have the power to choose your pair of currencies, and their amount, based on which way the market's heading, and still turn a profit. It makes no difference which way the exchange rate is headed, down or up, because you always have the choice of buying US dollars and selling Yen, or the other way around - buy Yen and sell US dollars. And no, you don't need to actually own any particular currencies, or have them in your hand, in order to make transactions with them on Forex (to buy them or to sell them).