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AnimeSpirit 03-04-2007 10:16 PM

Forex 101

Now, I don't in any way claim to be an expert on this topic, but I do find it fascinating and those of you who are investors might like to know this information.

What is the Forex?
The FOREX is an abbreviation for "Foreign Currency Exchange." This is a means of investing your money in ways not unlike the stock exchange. However, instead of exchanging stock, you are literally exchanging currency between foreign countries to await a shift in the rate of exchange. How do you make money this way? It's very simple actually.

How does it work?
The FOREX allows you to trade "neutral currency" to and from the currencies of other countries. You wait for the value of the currency to shift, then you close the trade to collect your profit. Most people don't know this, but the value of every country's currency changes every 5 seconds, so these shifts happen several thousand times a day. If you buy several hundred units of currency at a low value, you can sell it back later when the value is higher. It is that simple.

How do you start?
How do you start? First, you get yourself a broker. My broker's site is above and I've had no gripes with them whatsoever in the year and a half I've been with them. Once you have a broker, you have a few things you can do from here. Oanda gives you free, unlimited access to their FXGame system that is basically the exact same as their true FXTrade system, except you play with fake money. This is useful for getting to know the system and planning your trading strategies.

That's about all the info I can offer right now. The rest is experience and experimenting. Later! :D

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