What is Forex? Forex training for the beginner!

In short, Forex stands for The Foreign exchange market. In your Forex trading career (if you do decide to utilize some great resources below) you may hear Forex referred to by many different names and acronyms:

• Forex


• FX


• Spot FX


• Retail Forex

So what is traded in the Forex market? The simplest answer to that question is money. You are buying one currency, and selling another. Due to the fact that you have to buy money with money, Forex trades are done in currency pairs such as:


USD/YEN (United States Dollar / Japanese Yen)

GBP/AUD (Great Britain Pound / Australian Dollar)

Another way of looking at this is that you are investing in a particular country's economy by the money you purchase. As the country's economy prospers, so do you... if done correctly.

The Forex Market is the largest financial market in the world. The current amount of daily trading done in the Forex market is around 3 Trillion dollars. By comparison, the New York Stock Exchange trades around 30 billion dollars a day.

This is a massive amount of money flowing between large banks, governments, other financial markets, and more importantly, individuals just like you.

One of the popular reasons for the massive interest in the Forex market is that it has been referred to as the market closest to the ideal perfect competition. Due to the fact that the Forex market is global, trading continues 24/7 hours a day except on weekends.

Forex trading is the optimal starting point for those interesting in investing due to the fact that you can trade on your schedule. No matter what time of the day, you can participate in the active process.

Trading is done by the purchasing and selling money when the exchange rate is in your favor. When you see exchange rates, they are listed in pairs like USD/GBP.

For example, as I write this, current exchange rate between dollars and pounds is 0.5055. This means that 1 dollar is worth .5055 great britain pounds. In the Forex world, you would see this FX quote (Forex Quote) written as USD/GBP = 0.5055.

Lets break that down even further.

The first term, USD, is refered to as the base currency. The second term, GBP, is refered to as the quote currency.

Sometimes you may hear the quote currency referred to as the counter currency. However, I prefer quote currency because it makes sense that the exchange rate is a quote.

So lets just say you wanted to purchase 1,000 AUD (Australian Dollar) using USD (United States Dollar). The current FX quote was:

USD/AUD = 0.9018

1,000 AUD x .9018 = 901.8 USD

You had to pay $901.80 USD. Now, 1 week later, you notice that the FX Quote was USD/AUD = 1.1057, and wanted to sell back the 1,000 AUD you bought.

1,000 AUD x 1.1057 = 1105.70 USD

1105.70 USD - 901.80 USD = 203.90 USD

You just made 203.90 USD profit from the original 901.80 USD you had to pay for the $1,000 AUD you initially bought.

Like I stated before, the Forex trading market has a lot of potential for huge incomes due to the global scale of the market. It is impossible for one person to corner the market, so it provides a fair playground for everyone involved.

There are many great resources and books to teach you how to become successful with Forex trading. However, many people do not have the time to invest in learning the inner workings of the Forex market.

Don't worry, there are many different ways to learn the vital information you need to become sucessful at Forex trader.

By far the most popular Forex software to date has been the Forex Killer by Andreas Kirchberger. Mr. Kirchberger used to work for Deutsche Bank as a forex advisor, but decided to start his own business which launched the Forex Killer among other Forex training resources.

13,000
Forex Killer customers can't be wrong.

The Forex Killer system works by:

1. Currency information that you gather is fed into the software. Mr. Kirchberger provides all of the training and instruction needed.


2. Press the "Calculate" Button to generate the next signal and its probability


3. Place the market orders and collect your profit!

It sounds simple, because it is. The real secret to the system is the training Mr. Kirchberger provides. The Forex Killer software analyzes the market and exchange rates, and triggers buys and sells based upon the information you submit.