What is Forex?

Forex stands for foreign exchange; it´s also known as Fx. In a forex trade, you buy one currency while simultaneously selling another - that is, you're exchanging the sold currency for the one you're buying. The foreign exchange market is an over-the-counter market.

Who trades currencies and why?

Daily turnover in the world's currencies comes from two sources:

• Foreign trade (5%). Companies buy and sell products in foreign countries, plus convert profits from foreign sales into domestic currency.
  
• Speculation for profit (95%). Most traders focus on the biggest, most liquid currency pairs. "The Majors" include US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar. In fact, more than 85% of daily forex trading happens in the major currency pairs.
  

Bids, aks, spread

Just like other markets Forex quotes consists in two sides, bid and ask.

The BID is the price at which you can SELL base currency.

The ASK is the price at which you can BUY base currency.

What's a pip?

Forex prices are often so liquid, they're quoted in tiny increments called pips, or "percentage in point". A pip refers to the fourth decimal point out, or 1/100th of 1%.

For Japanese yen, pips refer to the second decimal point. This is the only exception among the major currencies.

Well now you know the basics in Forex. You may start a demo account, and practice before you trade with real money.

If you need a helping hand: http://www.forexmegatrion.com/ and http://www.fx-megaforex.com/.