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Many investors now use Forex trading software to make money online. And some also learn forex trading while using their software. They obviously want to learn forex because of potential huge profits.

The first step to learn forex is knowing that it's a global market where foreign currencies are bought and sold on a daily basis. When you learn forex you'll find it's also known as the Foreign Exchange market. Often referred to as the FX, or Spot FX. Many investors just call it the Spot.

Forex is also the world's largest financial market. It trades over $4 trillion every day and makes the New York Stock Exchange appear puny with its $25 billion every day. The forex market is far larger than all of the stocks and futures markets put together.

Investors can make large amounts of money on the FX. That's what makes it so huge and popular. It's the popularity of forex that motivates investors to learn more. Money is obviously lost when trading in foreign currencies. But if more money was lost than gained, then the FX would have been a dead duck in water long ago.

How do investors learn forex and make money trading? When dealing in the Foreign Exchange market you buy one particular currency, while at the same time, another type of currency will be sold. You need to use a broker or dealer when buying and selling foreign currencies.

Only money is traded on the Foreign Exchange market. The currencies are traded in pairs. For example, the US dollar and the Japanese Yen (USD/JPY). Or the British Pound and the euro (GBP/EUR).

What confuses many people is how one foreign currency is valued against another. What makes one currency gain value one day while another loses value that day, then the opposite occurs the next day? Well, currency value is determined by how the market views the present health and the future health of a particular country's economy, compared to other economies. And, as you will already know, economy pertains to a country's system of wealth creation.

What's important to know about forex is that it does not have any physical location or a central exchange. The Spot is in reality a global currency market trading electronically through a network of banks, 24 hours a day.

In the not too distant past you needed at least ten million dollars before you could trade in the Spot. It was originally set up to be used by banks and huge financial companies.

Now, thanks to internet popularity, the ordinary global public can trade online in the currency market. It's now easy to learn forex and use it. All you need to use the FX is a computer with a high speed connection. And $50 or so to set up your trading account with a Foreign Exchange market broker or dealer.

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