What is Forex Trading?

You can see it as the trading of different currencies. For instance, let's say you decide to go on vacation from South Africa to the USA. You have to take some dollars with you so you go to the bank and take your Rands in exchange for Dollars. At the time of buying the dollars the exchange rate is 7 to 1. For every R7 you sell you get $1. Let's say you bought $1000, at the exchange rate given you have to sell R7000. You go on holiday and spend let's say $900. When...