Here's a little introduction for those that are completely new to forex and are having a hard time understanding the terminology.

First off, you need to know that the forex (currency) market is, by far the most traded market in the world.  The size of the stock market pales in comparison to how much money is exchanged in the forex market.  So, it is a very liquid trading market.  There will always be buyers and always be sellers.

Unlike the stock market, it doesn't require as much capital to get started.  Most forex brokers have very low minimum deposit requirements, so you can technically open up an account for a couple hundred dollars.

You also have the ability to open up mini and micro accounts so you don't have to risk that much money on trades.

There technically is no physical exchange, like you see in the stock market, with its New York Stock Exchange, in which floor traders trade stocks, just like you see on CNBC.

You also have the ability to go short (sell) or long (buy) when you open a position in the forex market. As long as the trader is correct, they will make money. So technically, the forex market is recession free, just as long as you know which way its going.

Since the forex market is open 24 hours a day, you are guaranteed to find some time in order to trade the market. Since most people work the 9-5 job they have a hard time finding time to trade the stock market. No so, with forex.  There is no closing bell, although it is closed for part of the weekend.

If you want to get your feet wet, and find out how to trade, without worrying about money, you can open a demo account with many brokers to see how it all works. Better yet, you can download the forex platform, Metatrader which is completely free, and not have to open an account with a broker.

For those that want to read a great book on the true "nuts and bolts" of trading need to take a look at Bird Watching in Lion Country.

You can check out that, as well as many other forex reviews.

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