Forex Trading refers to trading of foreign currencies. The Foreign Exchange Market is the world largest financial market, where currency of one country is exchanged with another country. While it is similar to the stock market in many ways, trading is not conducted on a central exchange, but through a currency rate exchange system.

There is a misconception that in order to do Forex Trading, you must invest a lot of money and time. This simply isn't true. There are several companies that allow you to open a live account with a small deposit usually between $100 and $500 depending on the company. But back up, before jumping in and opening a live account, get educated. Read everything you can about Forex. There are many quality books, websites and E-books on this topic. Ask a bunch of questions to people that are currently trading in the Forex market; this allows you to learn from someone else's mistakes or if you so chose invest in a complete Forex Training Program [http://www.forexforextradings.com]. Several websites allow you to open a demo account to try out the market before you invest your "real" money. This is strongly recommended.

When you have your account live, start with small trades, the five major currencies that are used in trading are: U.S. Dollar (USD), European Monetary Union (Euro), Japanese Yen, British Pound, and Swiss Franc. Trades are priced in currency pairs and look similar to this - EUR/USD, USD/JPY, GBP/USD, USD/CHF. All trades are quoted directly or indirectly. Currencies have two prices bid and ask. The bid price is always smaller than the ask price. All traders should take a conservative approach and use orders, such as the take-profit or stop-loss, to minimize losses.

Just like any investment, while Forex Trading can be profitable, there still are risks involved. Learn all there is to know about Forex trading, and trade smart.