The Internet has made available not only opportunities in the likes of gambling in every shape and form, but also in investment and trading in stocks and currencies. FX trading is in money rather than items, and the market has a daily turnover of over two trillion dollars, making it the biggest in the world.

The basic principle of FX trading is the buying and selling of currencies in pairs, such as the EUR/USD or the YEN/EUR. These currencies are part of the ‘Majors’, those most heavily traded in because of their liquidity and the ease with which they can be converted to cash. Trading in the ‘Majors’ accounts for over 80 per cent of the FX market. Only 5 per cent of Forex trading is down to countries trading for conversion of currencies into their native type following sales of products. The rest of the market is dominated by speculators. As currencies are no longer pegged to the dollar as they used to be, there is great liquidity in the FX trading market.

Leverage, which is the amount a broker will lend a trader to conduct transactions, magnifies the tiny fractional changes in currency rates and allows for more profiteering, which is part of the attraction.

Traders who have busy schedules find the Forex trading market ideal, as it is open 24 hours a day and business is done by telephone and over the Internet. Liquidity also is fairly constant throughout the day, so there are opportunities late at night as well as in the early morning.