Forex comes from foreign exchange and is a virtual market that offers software platforms where traders can make money by selling and buying it. To make any money you have to buy low and sell high. Forex principle is similar to the stock exchange. Transactions through Forex are done, in fact, by a broker, who puts at the client’s disposal a software platform for transactions.
To get a view of how Forex works, a demo version of a software platform such as MetaTrader may be downloaded with a free account. This way one can do transactions with virtual money. There are many brokers and many software platforms at Forex. Don’t bother if you don’t have real money, the broker can lend you some. The account can be in any foreign currency and transactions are done in the one you want and choose. As with stock exchange, Forex transactions are based on speculations. You can earn money but you can also lose it. The idea is that you buy cheep and sell expensive.
First, choose a broker at Forex where you will open an account. There are brokers where a 100 Euros account is enough. Put your money into the account and the broker will offer you a software platform. Using this platform, you will be able to do transactions. Don’t be in a hurry, take your time and study all you need to learn about foreign exchange currency trading. You can practice different strategies that can be found on some sites such as Forex Factory.
At Forex, when the trader sells main currency and buy it later this is called short selling. When the trader buys main currency and then sells it later this is called going long. In both cases, there is the possibility to earn money. A trader can make money on Forex if intuition works well to guess what the direction will be. When a trader is earning, another one is losing money on the other side and at the same time. Take your time, Forex market is open 24 hours a day if you have a good Internet connection!
When you chose the two foreign currencies for transaction, you have to pay attention to the evolution of the rate of exchange and make predictions. As this is sometimes quite difficult, actions done through Forex may be very risky. However, there are many websites offering information about exchange rate analysis and its trends or other similar predictions.