Carry Trade: the purpose is to earn extra income from the daily interest payments when you hold on to a currency pair. Selection of the right currency pair is essential for this to work. You will need to buy the currency with the higher interest rate and sell the currency with the lower interest rate.

Cross Currencies: currency pairs that do not involve the U.S. Dollar.

Long Position: occurs when a trader initially buys currency with the expectation that the currency will increase in price and then selling it later at a higher price.

Short Position: occurs when a trader initially sells currency with the expectation that the currency will decrease in price and then buying it back later at a cheaper price.

Day Forex System Trading,

What is all the Hype About?

Forex trading is all about making big profits, just tons of money to be totally blunt. As some investors have found, it quite simple to make a vast amount of money since the forex(foreign exchange) market fluctuates daily just like the stock market does. The Forex system is able to be traded online by a private investor such as yourself, or through your bank just as you would be able to invest in a mutual fund or stocks.
Brokers love selling people this at the bank due to the huge commissions.

If you are seriously thinking about getting involved in the Forex markets you should be aware that essentially your money is being invested in foreign countries. The forex market allows you to have your money invested in one country one moment, and another on the next trade all in one market one day. As one countries currency value increases, you can sell at a profit and move it immediately to another country, this is how profits are made as this process is repeated.