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Forex has been around for quite some time and they used to only cater to the very wealthy. These people have large amounts of money and take charge over the market.

But the coming of the internet has made a lot of these avenues possible for private investors. Forex trading has inspired many automated tools and bots aimed at helping you trade.

Before jumping into the currency markets, it is important that you understand what trading in these markets entails. Many investors are challenged and overwhelmed, when they explore new markets without prior expertise.

This can lead to some very steep losses. Many people have lost a huge amount in their stocks and mutual funds due to the current US economy. You don't have to suffer the same fate.

So what are some basic facts about the Forex market?

1. It's open 24/7 and year-round.

2. Over US$2 trillion in transactions are conducted in every 24 hour period making it the largest market on earth

3. Due to this incredibly high volume it's virtually impossible to corner or move the market or matter what how big the size of the transactions you're able to do.

4. Also due to the huge size it is the most liquid market on earth so when you want to get out and exit a trade you can do so almost instantaneously

5. Setting up an account is basically the same as setting up a stock trading account like you would normally do at any other brokerage

Which currencies can be bought or sold in Forex?

Trading is done in basic pairs for the predominant currencies such as the US, Australian and Canadian dollars as well as; the Euro, the Yen (Japan), Franc (Swiss) and the British Pound.

This is something that is unique to the foreign currency market in that the currencies are basically paired up.

The seven basic pairs are as follows:

1. The US dollar/Euro

2. The US dollar/Japanese yen

3. The US dollar/British pound

4. The US dollar/Swiss Franc

5. The US dollar/Canadian dollar

6. The US dollar/Australian dollar

7. The US dollar/New Zealand dollar

It seems that if you look at various stats over 70% of trades are done in the Euro/US dollar pair. Pips, a specific jargon term used by the Forex market space, refers to the situation in which trades are done. You can't trade currency in any smaller amount than that.

For example, you have probably seen some of the quotes that you can buy one euro for $1.53 US. This would be the Euro/USD dollar pair. So if you were to trade 10 pips of this pair then you would be able to get €10 for a price of $15.30 US.

Then of course you would be hoping that the euro would rise against the dollar so that when you went to sell your €10 you could get say $16 US for them which would leave you a profit of $.70 US.

100,000 units of the currency of your country is the general transaction size in the forex (4x). 10,000 unit of your base currency constitutes a mini transaction while 1000 units is a micro-transacation. To be able to trade in these smaller lots you have to have a specialized and specific Forex account which is either a micro-account or a mini account.

While offering some great advantage, forex trades can also lead you through a exploding mine packed obstacle course and if you are not careful you could have disastrous mega losses. If the trade ends out in your favor you can reap an enormous amount profit with little investment. If the trade is against you, even if you put a little out of your pocket, your loss may be huge.

This is a good start to your Forex fap turbo education and you definitely need to know more before you dip your toe in the water and risk your own real money in this market place which is rife with opportunity but also infested with sharks who would love nothing more than to take all your money.

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