Forex stands for "foreign exchange market" where currency of one country exchanges the currency of other country. The most common currencies are referred to as "Majors". The major currencies involve US Dollar ( USD ) , Japanese Yen ( JPY ), European currency ( Eur ), British Pound ( GBY ) , Swiss Franc ( CHF ) , Canadian Dollar ( CAD ) and Australian Dollar ( AUD ) .
As the forex is evolving there are other countries starting to join in these majors and starting to appear in several online trading platform, such as New Zealand Dollar ( NZD ) , Polish Zloty ( PLN ) , Danish Krone ( DKK ), NORWAY Krone ( NOK ) And So On . Eventually, soon before we know it every country currency will be traded via an online forex trading platform.
Before getting on a online forex trading platform one should keep in mind that where your money can go up it can also go down but if you have an insight on what factor play major role for a currency to go up or down you may protect yourself or be able to hedge yourself from any big losses.
There are several factors that influence exchange rates that need to be accounted i-e market sentiments, the state of the economy, government policy, demand and supply, politics, inflation rates, capital movements, speculations, exchange rate policy, interest rates, tariffs and quotas, exchange control and for sure the global weather. In a nut shell, if a country is buying more then it can sell, its currency will devalue with a rate according to how much and in to which country it is spending .
In order to trade these currency pairs, one may need the assistance of a currency broker. A broker may charge a commission from the spread of a currency pair which also refered as pips.
There are several online broker offering different levels of user friendly
interactive, click to buy and sell currency trading platform. Some platform can even be integrated with plug in softwares that will execute the trades for you according to the given strategy. Such softwares or program are also referred as expert advisors. Some brokers have taken a further step ahead and now offering complete forex educational courses just for opening an account with them.
Curious! want to find out more about interactive trading platforms, pips, expert advisors, then you can always check out the Forex Yard which is just around the pond.
Some forex pond manners and wisdom:
If you don't have an exit then don't enter.
Best to enter at a new high or a new low.
Shorter the duration, harder the trade.
Getting out is harder then getting in.
| 
