If you are doing any forex research then you have come to the right place.  Forex (Foreign Exchange) is the name given to the direct access trading of foreign currencies. With an average daily volume of $1.4 trillion, Forex is 46 times larger than all the futures markets combined and, for that reason, is the world's most liquid market.

The problem that most would be currency traders encounter is a lack of appropriate literature. Most of the books on the subject deal with macro economic theories. If you want to study economics you are better off enrolling in a university class. In the real world with such knowledge and 10 dollars you can buy yourself a lunch. The real world is inhabited with real people. And real people eat little geeks for breakfast. Welcome to the world of currency trading.

Currency trading or forex trading (short for foreign exchange trading) is rapidly expanding and more and more private individuals are now getting involved in fx trading and forex day trading mainly due to the explosion of mini forex sites.  You no longer have to risk considerable sums investing directly in the forex market.  Sites are being set up that allow you to invest quite small sums and the forex site pools the money from many investors and re-invests this larger sum in the forex market.  Forex brokers are the people that set the market and trade in the currencies.  You can get access to the forex brokers through online forex trading at such sites.  We also list on this page the sites to avoid. We DO NOT recommend any particular site although if you want to start small we have a link to a site that 'feeds' into the forex market and you can invest as little as $50.  This is not a recommendation, only some more information about what is available other than launching yourself directly into a forex market.  This is an information only page.

Until recently, the forex market wasn't for the average trader or individual speculator. With the large minimum transaction sizes and often-stringent financial requirements, banks, hedge funds, major currency dealers and the occasional high net-worth individual speculator were the principal participants. These large traders were able to take advantage of the many benefits offered by the forex market vs. other markets, including fantastic liquidity and the strong trending nature of the world's primary currency exchange rates.

What is Foreign Exchange (FOREX))?

Foreign Exchange (FOREX) is the arena where a nation's currency is exchanged for that of another. The foreign exchange market is the largest financial market in the world, with the equivalent of over $1.9 trillion changing hands daily; more than three times the aggregate amount of the US Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location and no central exchange. It operates through a global network of banks, corporations and individuals trading one currency for another. The lack of a physical exchange enables the Forex market to operate on a 24-hour basis, spanning from one zone to another in all the major financial centers. Traditionally, retail investors' only means of gaining access to the foreign exchange market was through banks that transacted large amounts of currencies for commercial and investment purposes. Trading volume has increased rapidly over time, especially after exchange rates were allowed to float freely in 1971. Today, importers and exporters, international portfolio managers, multinational corporations, speculators, day traders, long-term holders and hedge funds all use the FOREX market to pay for goods and services, transact in financial assets or to reduce the risk of currency movements by hedging their exposure in other markets. MG Financial Group’s combination of low margin and high leverage has changed the way the Interbank currency market operates. We have done this by opening the doors of Forex to retail investors, giving them the professional tools and services needed to trade effectively in an independent atmosphere. Basics of Futures Trading Trading commodity futures and options is not for everyone. It is a volatile, complex, and risky business. Before you invest any money in futures or options contracts, you should:

• Consider your financial experience, goals, and financial resources and know how much you can afford to lose above and beyond your initial payment.

• Understand commodity futures and option contracts and your obligations in entering into those contracts.

• Understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.

• Know who to contact if you have a problem or question. Reading a foreign exchange quote may seem a bit confusing at first.

However, it's really quite simple if you remember two things:

1) The first currency listed first is the base currency and

2) the value of the base currency is always 1.

Understanding Forex Quotes
Reading a foreign exchange quote may seem a bit confusing at first. However, it's really quite simple if you remember two things: 1) The first currency listed first is the base currency and 2) the value of the base currency is always 1.

The US dollar is the center-piece of the Forex market and is normally considered the 'base' currency for forex quotes. In the "Majors", this includes USD/JPY, USD/CHF and USD/CAD. For these currencies and many others, quotes are expressed as a unit of $1 USD per the second currency quoted in the pair. For example, a quote of USD/JPY 120.01 means that one U.S. dollar is equal to 120.01 Japanese yen.

When the U.S. dollar is the base unit and a currency quote goes up, it means the dollar has appreciated in value and the other currency has weakened. If the USD/JPY quote we previously mentioned increases to 123.01, the dollar is stronger because it will now buy more yen than before.

The three exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In these cases, you might see a quote such as GBP/USD 1.4366, meaning that one British pound equals 1.4366 U.S. dollars.

In these three currency pairs, where the U.S. dollar is not the base rate, a rising quote means a weakening dollar, as it now takes more U.S. dollars to equal one pound, euro or Australian dollar.

In other words, if a currency quote goes higher, that increases the value of the base currency. A lower quote means the base currency is weakening.

Currency pairs that do not involve the U.S. dollar are called cross currencies, but the premise is the same. For example, a quote of EUR/JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen.

When online forex trading you will often see a two-sided quote, consisting of a 'bid' and 'offer'. The 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency).

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