Some people, and even investors, are not aware that forex currency trading means trading of foreign currencies. This is because most do not know that forex is a simpler term for "foreign exchange."
Ten years ago, forex currency trading was challenged with a lot of unfavorable factors, making only the large banking and institutional firms to have access to the systems and tools used in the trading game. Nonetheless, as the technology develops, any individual investor can hop right in and trade with one of the online platforms or software based systems.
There are basically four currency pairs that dominate the percentage rates. These are the USD and Euro Dollar; Japanese Yen and USD; Swiss Franc and USD; and British Pound and USD. The goal in investing these monetary tools is to hold a currency that will appreciate in value, relative to other currencies. For example, when you bought 50 British Pounds for 100 USD, held for one week. The value of Pounds within that period increases relative to USD, hence, you can convert the Pounds back into USD for, say, 120 USD.
Other trading industries like such in the stock market run for hours. Forex currency trading, on the other hand, goes round the clock. The Business hours never stop around the world, as when the Asian market rests, the Europe and American market starts and vice versa.
Another important distinction of forex trading is its non-centralized nature of exchange like NASDAQ or NYSE. Trading circulates individually from one banking center to another.