Today i was browsing around and I ran into something called Forex Trading. I was confused because I have heard of the stock market and mutual funds etc. What is this forex? I did some google searching and found that there are a lot of people who trade forex. From what I have been able to gather up it is buying another currency and when the value of the dollar increases you would sell it and make a profit.

This was a new thing to me and sounds really interesting. Why not take advantage of the value of a dollar in another currency? For an example currently you can buy 1168.4 yen for $10 USD. If you did that and then tomorrow the value of the dollar in Japan increased you could sell the 1168.4 yen for say $12. I am not sure how often the rates change but it does sound interesting and I am going to look into this. Pretty much rather than investing in a company on the stock market, you are investing in the value of the dollar converted to other currencies.

I am going to Google this term more and I will post here with any updated findings. I am not even sure if you can be a “day trader” as you can with stocks without having a broker etc. I wonder if there are sites out there like E-Trade for trade forex.