You probably think people trade services and goods only. You will be surprised to hear that just like stocks and a genuine; currencies are also traded and are a fantastic source of passive income for the rest of us who have some money to invest. For those who have no inkling about foreign exchange exchange trading, that's a pity. The forex market is the most liquefied financial market in the planet with trillions money worth of various currencies getting traded in every day basis. Such liquidity provides great opportunity for earning money, but don't leave your day job yet until you have learned the forex trading basics.
Forex trading looks simple on papers. Like trading some other kind of good, you earn by buying low and selling high. But trading currencies is different. For one currency values usually do not stay the same for long and although currency movements open up plenty of opportunities for earning profits, you must have great skills in predicting where currency values should go – up or down. So the first things you have to learn are the factors that induce values to move. There are numerous: the economy of a certain county, the economic and political guidelines, trading relationship with other countries. Always get foreign currency from reputed currency exchange service.
These factors are what experts call as fundamental factors that affect currency movements. Predicting currency movements based on fundamental factors is known as fundamental analysis.