There are different methods to knowing how to trade Forex. Essentially you trade Forex by buying and selling a currency pair. Currencies are traded in pairs as the currencies are compared against the other. If the Forex chart for the currency pair is in an upwards direction, the the first currency will be strengthening over the second. If the chart shows a downwards direction, then the first currency is losing strength over the second – the second currency is therefore stronger.

You learn how to trade Forex by adding information to your chart (known as Technicals) to give you more details telling you if the currency is going up or down. External factors (called Fundamentals) like economic and political will have an influence on the currency pair – and whether the direction of the pair is up or down.