Introduction to forex

Alright, so I wrote a pretty long introduction which was about the blog itself, but what is the BLOG about? Forex, and investments.

Today, I'll talk about forex.

Well, what's forex? The word itself stands for foreign exchange. It's basically a market for currencies.

You buy and sell money, which kinda sounds stupid, but it's not.

As every commodity, money itself has value as well, which differs from other commodities (currencies). As we know, the values of currencies always change, we hear it all the time in the news, etcetera. Did you know you can actually get rich off this?


Let's pretend that the currently you can get 2 Canadian dollars for 1 US dollar.

So, you buy 2 canadian dollars for 1 US dollar, you have 2 CAD on you. The exchange rate suddenly drops to 1 canadian dollars for 1 US dollars, for whatever reason. ( I'll probably write a post about why the value of a currency can rise/drop ).

Wait a second.. You have 2 canadian dollars from your previous exchange, so you just exchange it back for 2 US dollars. You just got a profit of 1 US dollar. Awesome, huh?

That's basically what forex is about. The trading of currencies. Of course, it's not THAT simple, that's why I've made a blog to explain everything to the tiniest detail, so that we, forexnoobs, can later be called forexpros. Well, I hope this'll happen someday!