I Know NOTHING at all about Forex and would like to learn starting with the VERY basics is there a good book or website I can read up. Basically all I know about Forex is that it has to do with currency trading....

Answer
If you want to learn about Foreign Exchange markets, you should begin by watching television. Bloomberg, CNBC, or other financial television networks can be a good source.

Essentially, FOREX is very straightfoward. Exchange rates are just units of home currency expressed in terms of a foreign currency. The relative values of currency are set according to supplies and demands of foreign currencies. The demand for foreign currencies is largely established by the demand of a nations exports. The more a nations exports are demanded, the greater value its currency. Hence, a strong Pound, a strong Dollar, a strong Euro.

Further, a nations' currency supply is typically set according to a nations monetary policy. A loose monetary policy, that is large amounts of currency in circulation, tend to decrease a currencies value. A tight monetary policy, that is to say smaller amounts of a currency in circulation, tend to increase a currencies value.

However, FOREX markets are highly volatile and the information I just presented to you is very basic and abstracted. Lots of other factors affect currency values. For instance, government intervention. China's currency should be far more valuable than it is now, but Chinese policies affect its extraordinarily low value.

You now know all the basics about FOREX! Stay tuned to Bloomberg to learn more. Also, if you're planning on going into the FOREX trading business, it's very difficult and markets are highly volatile. Hope you have good contacts.

What is a Forex and how can I make money using it?

I am clueless on Forexes and would like to know how they work.

Answer
FOREX - the foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world.

Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates.