by Fred Todle There are some misconceptions regarding the forex trading system. Some people equate the trading of foreign currency with the stock market. While it is true that some similarities exist, there are major differences between the two. Basically, forex is the trading currencies. It is essentially the exchanging one currency for another. In the forex trading business, one currency is purchased with the hope that it will go up in value in comparison the one we are selling. Forex trad