The Foreign Exchange market is the largest financial market in the world, with a daily average turnover of US$1.9 trillion — 30 times larger than the combined volume of all U.S. equity markets. Foreign Exchange is the simultaneous buying of one currency and selling of another. Currencies are normally traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY). Trading currencies on margin lets you increase your buying power.
Example: Suppose you feel that the USD is undervalued against the JPY. To execute this strategy, you would buy USD (simultaneously selling JPY) and then wait for the exchange rate to rise.
More info on FX coming soon. Stay tuned..