The word “Forex” stands for foreign exchange or the exchange of currencies. When people engage in the exchange of currencies e.g sell one currency and buy another one. This is called currency exchange trading or simple known as forex trading.

Because the values of these currencies are constantly changing and are effected by local and global economic factors, which provide an opportunity for the trader to profit from these changes or fluctuations in the currency markets.

The most traded currencies in Forex are:- Euro, US dollar, Swiss Frank, British Pound, Japanese Yen. although trading is not limited to these currencies alone, the Forex offers a wide variety of currencies one can trade. My personal favorite being the cable market or USD/GBP.

To describe in simple terms how people trade the Forex, it would look a bit like this.

1. Forex trading is managed primarily online.
2. Sign up to a trading account and down load a trading platform which is a working environment, that traders use to chart the movements of currencies online. Then with the use use of a trading account,  place the trades.( buy or sells currencies)
3. Others use a broker, who will recommend a trading platform and with whom you place your trades. 

In Forex currency trading, currencies are traded in pairs.
EUR/USD, GBP/USD, USD/JPY and so on.

The first currency in the exchange pair is referred to as the base currency and the second as the quote currency.
For example, in Forex we see GBP/USD exchange rate = 1.520 The exchange rate tells to trader how much of the quote currency should be paid to obtain one unit of the base currency.
In other words, with GBP/USD the price of the pound is expressed in US dollars.
1 euro = 1.520 dollars.

I hope this gives an insite into some of the term within Forex trading and a breif  understanding of how a trade is implamented.