Forex investing and the Forex markets have been around for a while but were previously avenues open only to the super wealthy and the institutional investors. The market was acting upon the whims and orders of large banks and stinkingly rich individuals.

But with the advent of the Internet many of these avenues have opened up to individual investors. Many Forex trading tools have been released to aid you in your training.

First of all, you need a basic understanding of currency markets, and what you are getting into when you start trading. Many investors are challenged and overwhelmed, when they explore new markets without prior expertise.

The results may include massive losses. With the recent downturn and recession in the US economy many people who thought they understood stocks and mutual funds are down 30% to 50% in their retirement accounts which is a huge hit. 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

What currency can be traded on the foreign exchange market?

Various leading currencies are available for trade in basic pairs, including the United States, Australian, and Canadian dollars, as well as the Euro, Japanese yen, Swiss franc and British pound.

The currencies are generally coupled, which is distinctive to the foreign market.

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

Over 70% of trades in the forex market were between Euros and US Dollars. Pips, a specific jargon term used by the Forex market space, refers to the situation in which trades are done. Currency trades cannot be effected in smaller denominations.

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.

The standard transaction size in forex, aka 4x, is 100,000 units of the base currency of the country that you live in. There is also a mini transaction of 10,000 units and a micro-transaction of 1000 units of your base currency. You must have access to a micro or mini account with Forex in order to make small lot transactions, that are specifically created for this purpose.

Forex gives you the concession of massive leverage but you should be extra-careful while handling it. If the trade ends out in your favor you can reap an enormous amount profit with little investment. However, when the trade goes against you even though you only put a little bit out of pocket you could lose massively more out of your entire account.

You should be careful of risking your own money in the market place, however starting on your Forex education is a step in the right direction

Alexander James has been an investor for a while and loves reporting on the forex markets. It’s probably the non-stop 24/7 action which Fap Turbo software allows. You can see Fap Turbo Week 1 Test Results here.