Much similar to the way that investors earn and lose money in the stock exchange, currency trading is a risky business that may or may not pay off.  The foreign exchange market is a hot spot for investors who are savvy enough to buy and sell at just the right time.  Studying the hot stocks market, interest rates and the countries themselves are just a few of the ways that an investor may be able to increase their success with currency trading. There are two basic types of exchange rates, including spot and forward. More about this can be found online.