Forex trading also known as FX or Foreign exchange is the trading of currencies on the market. The basics of Forex trading is the buying and selling of currencies. Currencies are grouped in pairs, like the EUR/USD and one currency of the pair is sold in order to buy the other.




Although it is virtual online trading Forex trading is very similar to real life trading. It depends on purchasing assets at a price and selling them at a higher price, or the other way around, selling assets at a price and buying them back at a lower price. The difference between the two prices is the profit that a trader makes.



Of course it can be very tricky because the Forex market is constantly changing, and hard to predict without vast knowledge and helping tools, and that is what causes many traders to suffer from losses when trading.



Forex can be done through two different ways, either by signing up with a broker, and being give direct access to the market to execute trades, or through an account management firm like MerexMarkets which handles all of the investors trades and executes them, giving back monthly profits.