foreign exchange market (forex, FX, or currency market)

The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies

ForexTrading.com's Mission

ForexTrading.com's Mission

ForexTrading.com aims to be a simple entry point to becoming a forex trader and a resource for anyone interested in the trading and analysis of currencies.

On these pages you will find:

• Tools that forex traders commonly use like technical analysis charts, an economic calendar and fx price alerter.
• Forex strategy, analysis and commentary from Saxo Bank.
• A modular forex education program with video and text tutorials.
• Topical forex news highlighted in "What's Hot?"
• A comprehensive financial glossary.
• The opportunity to open a Trial or Live forex trading account with Saxo Bank.

Bid/Ask

All forex quotes are quoted with two prices: the bid and ask. For the most part, the bid is lower than the ask price.
bid is the price at which your broker is willing to buy the base currency in exchange for the quote currency

ask is the price at which your broker will sell the base currency in exchange for the quote currency.

The difference between the bid and the ask price is popularly known as the spread.

EUR/USD

If bid price is 1.34568 and the ask price is 1.34588.

If you want to sell EUR, you click "Sell" and you will sell euros at 1.34568. If you want to buy EUR, you click "Buy" and you will buy euros at 1.34588.

How to Read a Forex Quote

GBP/USD

GBP = Base currency
USD = Quote currency

you will receive 1.51258 U.S. dollars when you sell 1 British pound.

How You Make Money in Forex

In the forex market, you buy or sell currencies.
You purchase 100 euros at the EUR/USD exchange rate of 1.1800 = 100 * 1.18 = 118
After a week you exchange your 100 euros back into U.S. dollar at the exchange rate of 1.2500 = 100 * 1.25 = 125
Your profit is 7 $

Currencies Are Traded in Pairs

Forex trading is buying one currency and selling another through a broker or dealer, and are traded in pairs
Major Currency Pairs

The currency pairs listed below are considered the "majors". These pairs all contain the U.S. dollar (USD) on one side and are the most frequently traded. The majors are the most liquid and widely traded currency pairs in the world.
Pair Countries FX Geek Speak
EUR/USD Euro zone / United States "euro dollar"
USD/JPY United States / Japan "dollar yen"
GBP/USD United Kindom / United States "pound dollar"
USD/CHF United States/ Switzerland "dollar swissy"
USD/CAD United States / Canada "dollar loonie"
AUD/USD Australia / United States "aussie dollar"
NZD/USD New Zealand / United States "kiwi dollar"

DEMO Account in Forex

Demo account allow us to practice forex trading
It is FREE and you can ability with a free 30-day trial
This is one of the best ways to practice your trading
There are lot of sites which provides free demo accounts.
You can try out one two three or even more demo accounts with several providers to practice
forex trading.
Then you can choose the suitable provider for you

Here are some sites where you can open a free demo account

Site 1

Site 2

Site 3