Currency Trading
To Exchange one currency for another currency is termed as “Currency Trading”

There are two reasons the relative values of a currency fluctuate:

• The First is because of a Real Market; as outside investors or visitors wish to buy things within a country, they are forced to convert their domestic currency into the currency of the country which they are buying. Similarly, as money leaves the country, people must sell their currency for the foreign currency they will need to spend or invest abroad.
• The Second force for currency fluctuation is speculation. When investors think a given currency will act strongly or weekly, they will buy or sell accordingly. This speculation can have drastic consequences on a national currency, and consequently on a country’s economy.

Currency Trading has many very real benefits over equity trading like the stock exchange. The spreads for currency trading are extremely low, making the cost to a trader very low as well. The volatility of their currency market is extremely high, which means that a trader can generate enormous return on a given exchange. The ratio of volatility to spread is approximately 500:1 for the currency trading market, as compared to 100:1 for even the most ideal of stocks.

Until recently, the currency trading market was very closed to “Small Investors”. Banking conglomerates and large multinationals were the main movers of this market place. In the past few years, however, new technologies have opened the doors to investors of all stripes. It is difficult to miss the enormous benefits of this “New” market for the individual investors. Higher returns with lower risk given the some amount of market knowledge have a very small downside.

Commodity Trading
Is an investing strategy that involves the buying and selling of goods that are classified as Commodities

There are many similarities between commodity trading and the trading activity involved with Stocks. One key difference has to do with the difference between what is traded.

A Commodity is normally defined as something that is considered to be value, has a quality that is more or less consistent, and is produced in large amounts by a number of different producers. When people choose to invest in commodities, they normally think in terms of items that are resources that may be purchased for a wide range of uses.

What is Commodity Exchange
Commodity exchanges are trading organizations that engages in transaction that involves the buying and selling of futures and option related to the commodity market. Generally, the commodity exchange will maintain a physical location where trading activity takes place. Increasingly, a commodity exchange will also provide online activity, including the ability to trade on the exchange by electronic means.

The Basic structure of any commodity exchange will involve creating a platform of standards, rules, and processes that will govern the trading activity of the exchange. All regulations and procedures must be in compliance with the National Law relating to investment trading with in the jurisdiction where the commodity exchange is physically located.

Foreign Exchange
The Exchange of one currency for another, or the conversion of one currency into another currency. It also refers to the Global market where currencies are traded virtually around the clock.