Trading Forex (foreign Exchange) is probably one of the most exciting ways to earn an income from home; it is also the quickest way in which you can start a home based business. Forex Trading is the buying and selling of foreign currency and literally billions of dollars are traded every day.

Trading foreign currency has been done by banks and big financial corporations for many years. Since the internet began it has developed in such a way that it is now possible for individuals to trade Forex at home over the internet at increments of as low as £0.50 a point.

There are a lot of programs on the internet that claim to be able to give you automated wealth from the foreign exchange market but most of these systems simply do not work. It is best to work with somebody who has experience in the Forex market before you go it alone as there are loads of different theory's behind trading Forex.

Trading Forex is the movement of one currency against another for example if you where to buy a trade of GBP/USA which is the British pound against the US Dollar at a price of 15550. If the price fluctuated up to 15600 then you would make a profit of 50 points. If you are buying your trade at £10 a point then that would be a profit of £500 and that sort of shift can happen in minutes. As you can see you are trading on the last two digits of a currency as with the above example the last two digits represent a tenth of a penny so the currency has only fluctuated ½ a pence but producing £500 in profit. It is not uncommon for currencies to move 200-300 points in a day so you can see the potential profit.

The Forex market does like many other markets move in trends that are effected by everything around us that influences the value of a market, with Forex everything that effects the value of a country effects the value of its currency which makes the foreign exchange market one of the most exciting markets to trade. With the right guidance it is possible for anybody to trade Forex profitably from home.