Currency trading - also referred to as foreign exchange, FX or forex trading is simply where one currency is exchanged for another at a certain exchange rate, with the expectation of making money when the exchange rates change.

A strategic position in a particular currency pair like EUR/USD is held and then exchanged back whenever the exchange rate moves in the trader's direction. Currency rates are always changing and are influenced by many factors including economic data, international events and political developments to name but a few. Foreign Exchange is very volatile and is considered to be the fastest moving financial instrument.

Forex trading was previously controlled almost entirely by banks and other big financial institutions, large investment funds and major companies. It has only been since the rise of the internet that this domination has changed. Smaller traders and ordinary people can now trade currency from their home computers alongside the major players, even enjoying spreads that are extremely tight.

In order to succeed in currency trading it is critical to a traders success to have accumulated the right trading knowledge. Currency trading is not a gamble; it is an investment that is done with a measured risk. With calculated risk and the right knowledge, it is possible to increase the odds of winning to at least 70% and this is all you need to be successful in trading.

To acquire this knowledge, you should spend the first two months learning technical and fundamental analysis from forex courses you can find both on and offline. It is only after successfully navigating the pitfalls of not maintaining emotional discipline that you can then consider yourself ready to start trading live with your own money. Remember to be successful in Forex requires strict adhering to your own rules laid down at the onset.