How do you trade the Forex? How does it work? -

You need to open an account wit a forex broker and deposit some money. After that you will be able to buy or sell forex futures. For each trade that you close, after paying the commission or fee , you either make or lose. If you are new to forex, don t be tempted to just jump in and trade. Read and learn as much as you can and do quot;paperquot; trades first to practice. Open an account but don t do real trades yet. Try out some of the new software like Forex Killer that will help generate some signals. When you are very comfortable, you can start doing real trade with aid of your software. Well I can try to explain this as simple as possible. Basically to answer your quot;How do you trade the Forexquot;, you first need money of course. Then you will have to find a broker that executes orders in the forex markets. Before all that though I would highly recommend learning the ends and outs of trading currencies before actually just trying to on the whim. Alot of brokers today offer mini and micro accounts for beginners. What this means is that you trade smaller lots (units of currency) rather than the standard lots of 100,000. What this means is that if you are trading standard lots, for every point move say for eg you buy EUR/USD at 1.5122 and sell it at 1.5126, you made 4 points (or pips which is used in forex). That means for every point it is worth $10 US dollars. Now mini accont every point (pip) is worth $1 and micro every point(pip) is worth 10 cents. Forex is very volatile and can move hundreds of points a day. Hope this helps.