What is forex?  The term “forex” is a kind of shorthand for “foreign exchange”, or the markets that exist to facilitate the trade of various currencies.  The values of all world currencies rise and fall, and just like stocks, profits can be made by purchasing an undervalued currency, holding it while it rises, and then selling it at a higher price.  For example, the British Pound may be a lower value today against the American Dollar, and tomorrow or next week it may have risen in value relative to the other currency.  Selling at that point would lock in a profit.

Originally used by large corporations who had operations in several countries and currencies, forex today is available to even individual investors.  Since most individuals don’t want to or can’t keep track of all the fluctuating currencies, forex trading software is available that helps to keep the various values and spreads organised.

In many instances the software designer or a company will also provide training on not only using the software, but on trading forex as well.  Many of these courses offer a time period where the investor can “invest” without real money, but see the effects of his or her decisions.  This can help these investors make better decisions when they begin trading with real funds.

Forex traders need to keep track of not only the currencies in which they’re interested, but also the bid and ask prices, or the difference between what the currency sells for and what it is purchased for. 

Since the currency markets are open every weekday, forex traders can keep their “day job” and trade currencies in the evening, easing into a new career if they find they have an aptitude for forex.