The foreign exchange market – also frequently called Forex – is an open market that trades between world currencies. For instance, American investors who have bought Japanese currency might think the yen is growing weak. If this is a good investment, this trader will be able to sell the yen for a profit later.
More than the stock market, options, or even futures trading, forex is dependent upon economic conditions. Learn about monetary and fiscal policies, account deficits, trade imbalances and more before going into forex. If these topics are mysterious to you, you may want to take a class in international economics to gain a thorough understanding of the mechanisms that drive exchange rates.
Gather all the information you can about the currency pair you choose to focus on initially. If you attempt to learn about the entire system of forex including all currency pairings, you won’t …