Online Forex Trading - What's it all about?

Forex trading is an activity that has been around for many years yet is unknown or misunderstood by many.

Those that do know what Forex trading is all about usually come to love the excitement trading can bring and several of these people go on to devote their whole lives to the skill.

It could be said that regardless of whether you have even heard of Forex trading before, the chances are you have already done it in one form or another without actually realizing it.

If you have ever been to a foreign country before and had to exchange currencies at your local bank then you have already taken part in Forex albeit in a far less profitable, less exciting and less lucrative way.

The term Forex is derived from the words 'Foreign' and 'Exchange' and quite simple means to take part in trades involving the exchange of one countries currency with another. Other terms often used to refer to Forex include 'Spot FX' or simply 'FX'.

Of course there are some major differences and benefits from trading Forex online through established brokers over simple currency exchange for your holiday, yet the core principles are the same.