Foreign exchange trading is the act of buying or selling currency pairs on the international foreign exchange market.http://www.investopedia.com/university/forexmarket/ Forex is known for it's around the clock trading schedule as well as the high amounts of leverage used by some traders. Leverage ratios can go as high as 250:1 or more.http://www.investopedia.com/university/forexmarket/

Technical analysis involves using historical price action to predict future market activity. Due to the large amount of historical foreign exchange trading data available, traders interested in technical analysis are able to create trend lines based on historical levels. The four major currency pairs in Forex trading favor a strong trending nature, and their historical moves may be used to predict future action. These pairs are the EUR/USD, USD/JPY, USD/CHF and GBP/USD. Some other currency pairs including the EUR/CHF have historically been more range bound, leading traders to predict smaller upward and downward moves in the future.http://www.investopedia.com/university/forexmarket/forex7.asp

Forex trading is known for the high leverage ratios offered by some brokers. Because of the relatively small daily moves between currency pairs, leverage ratios can get as high as 250:1. This allows Forex brokers to make market moves more meaningful and volatile for their clients.http://www.investopedia.com/university/forexmarket/

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