Real risk...

If you want to make money in the Forex Market you have to be able to predict where the price is going. The more accuracy you have in predicting how the price will change, the more you will earn. Your profit is measured in pips. Pip (or Piont) represents the smallest incremental move an exchange rate can make. It is one one-hundredth of a percent. For example, when a currency moves from 1.5720 to 1.5725 it has moved 5 pips. That means that you've won or lost 0.0005% of the money you invested in that trade. However trading for such profits is not worthy. That's why forex brokers introduced leverage. Most common leverage is 100:1. That means that for every pip you win or lose you will win or lose 0.0001%*100=0.01% of your investment.