Trading the Forex is not like the stock market where they are governed by the SEC. In Forex most of the trading is done through online trading platforms and a network of banking brokers.

A great portion of the capital that is exchanges comes from only five percent of the large banks and large corporations.

The other 95% comes from smaller investors who may have a few thousand dollars in their account to play with.

Evidently there is a lot of technical jargon involved like, Fibonacci retracement, which tells you where the level at which a market trend will break, and fundamental analysis which simply means information you are fed over the news.

These styles of terms scare almost all newcomer foreign exchange traders, but trust me they are not difficult to learn and there is no reason why you can not pick them all up.

The basic point is to buy one currency at an exchange rate that will rise up enough in value to be able to buy more of a currency which is worth less now because of the increased value all centralized around the US dollar.

The 0.0001 example I gave above is spot on for most of the major markets, but for the smaller ones sometimes the price might be measured differently.

I hope this article has been useful in assisting you to comprehend just how Forex strategy trading works.

Sincerely,
Jay Molina
Senior foreign exchange trader & Educator

Author's Bio: 

Jay Molina is an advanced Forex trader that helps other investors around the world to learn about the Forex market and its rewards and risks.
To understand more about forex strategy trading, visit the link: http://www.myfxinvestment.com