Forex is a short term name of Foreign Exchange. It involves buying and selling different currencies in a single market. It is like your local market where you buy a product for a certain amount and sell the product to different local market for a saleable amount. It is no different to currency trading. With forex, you simply have to replace the product with different currency, say in US dollars. You buy US dollars for certain rate using your Philippine peso and later you could sell your US dollars for a saleable rate. You might think how that rate is set. The rate is influenced by different factors such as inflation rate, interest rate, changes in government policies, market news, and more economic factors. Soon, we will go over the details of these factors.