Online Forex trading is also known as Forex or currency trading is a speculative form of investement trading, a way of making money by trading on changes in currency prices. If you are intereste in getting involved it is very simple these days because it can be done on your own computer from your home or office. If you are not sure how you could make money from currency price changes it is very simple to explain. For example you may hear about dollar strengthening which means that the value of the dollar is rising compared with other currencies. The value of the dollar usually rises when the american economy is strong compared with other countries. Currency prices are constantly changing going up or down in response to news, economic reports or market activity. The difference from stock trading is that currencies do not have an absolute value but are always priced relative to another currency. Online Forex trading uses leverage and margins to increase the value of trades. This means that you only need a small balance in your trading account to control very large sums. The most common leverage used by Forex brokers is 100 times. Because of high leverage a small percentage can come out to big profit or loss. Hence it is important to follow a good system which will give you clear signals on when to open and close a trade. Most of the systems rely on analyzing charts and mathematical indicators which you can access from inside most broker accounts. Alternatively you may choose to use an automated Forex trading system to trade for you.