If you read about investing, you've seen the word forex trading. Forex doesn't publicity in the major websites, many investors even don't know that Forex is the short for "foreign exchange". Recently, however, technology has developed to the point that any individual investor can hop right in and trade with one of the many online platforms. As recently as ten years ago, currency trading had high barriers to entry, so only large banking and institutional firms had permits to play in the forex trading game. When you are buying and selling in the forex trading market, you'll see that there are four "currency pairs" that dominate the trade markets. Those four are the Euro vs U.S. Dollar, US Dollar vs Japanese Yen, US Dollar vs Swiss Franc, and US Dollar vs British Pound. Your aim when investing in currency is to be holding a currency that appreciates in value in relation to the other currencies. As an example, if you bought 100 British Pounds for 200 US Dollars, held Pounds for 1 week, and in that period the value of Pounds increased in relation to US Dollars, you could then convert those Pounds back into dollars for, say, $120.
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