Forex News Trading

Forex is the financial market, where traders trade currency pairs, nominally exchanging one currency for another, betting on their rates. In Forex you go long on EUR/USD currency pair and that would be the same as buying the euros with dollars; you can, for example, go short on GBP/JPY currency pair and that would be the same as selling the British pounds for the Japanese yen. You gain money when the currency pair that you've went long on goes up or the currency pair that you've went short on goes down, and you lose in case the currency pairs moves against your position's direction.

The good part is that you don't have to hold all those currencies to trade them. Your broker "lends" and "sells" them to you at a current rates, so your trading accounts always holds the currency of your choice.

Another good part is that you don't have to wait for the currencies to move big before you gain some serious profit. Since you can use your broker's leverage, you can profit on very small price fluctuations. And the leverage is free! It usually starts from 1:100, so for each $1 invested in a trade, your broker lends you $99 making it $100. Of course, Forex broker can't lose because once your position's total loss exceeds your own trading capital, you get the margin call and if you don't deposit more funds immediately, your positions get closed out! But such things shouldn't happen if you use the right trading system.