Forex trading is a term which pricks the ear of anybody with an entrepreneurial spirit. Forex trading involves the trading of one currency for another at an agreed rate; this rate fluctuates according to economics, geopolitics and many other factors. By speculating on whether a currency’s value will rise (appreciate) or fall (depreciate), Forex traders can earn profit on their investment. In Forex, leverage enables you to trade without putting up the full amount which can be both a risk and advantage.
There are both risks and rewards with Forex trading and it is important for anybody to understand these before starting.