This chapter starts with an explanation of how currencies are bought or sold in the market and decodes a forex contract for long and short. Traders make money in the forex market by entering long and short trades. Traders go long on a currency pair when they expect the base currency to rise against the counter currency and short on a currency pair when they expect the base currency to fall against the counter currency. Four main factors cause forex prices to fluctuate: economic factors, political factors, natural disasters, and speculation. Since currencies are quoted in pairs, the fraction theory helps traders to get a sense of the market's general direction. The chapter also explains the three critical points in every trade and points out the bid/ask spread that brokers charge for each trade. It also explains the fraction theory, which is to pair the strongest currency against the weakest currency at any point and the result will be a strong uptrend.