How does Forex trading work…?
How does forex trading work? I have no idea. Please give me a basic uncomplicated answer..thanks 
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This entry was posted on Wednesday, August 27th, 2008 at 9:56 am and is filed under forex trading. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
August 27th, 2008 at 9:56 am
You buy and sell( at the same time) currency pairs. Example would be EUR/USD where you are buying one and selling the other. Depending on which direction you think it will go you buy/sell or sell/buy.
August 27th, 2008 at 9:56 am
very carefully!
August 27th, 2008 at 9:56 am
Register to this site and download a Free Forex Ebook. That will help you a lot in understanding how forex works.
August 27th, 2008 at 9:56 am
Currencies are always traded in pairs – the US dollar against the Japanese yen, or the English pound against the Euro. Every transaction involves selling one currency and buying another, so if an investor believes the euro will gain against the dollar, he will sell dollars and buy euros.
The potential for profit exists because there is always movement between currencies. Even small changes can result in substantial profits because of the large amount of money involved in each transaction.
August 27th, 2008 at 9:56 am
Hi Me,
I presumed you didn’t know much of Forex.
To put it in a simple to understand way….it is something you’ve been doing if you’re preparing for a tour to US from Great Britain.
Normally what you will do is to go to a money changer in exchange for USD with GBP.
E.g. You buy USD$1,000 with GBP 500 (exchange rate USD$1 : GBP 0.5)
Let’s say you cancel your trip and hold on with the USD for a year.
Now the exchange rate is 0.6 (i.e. exchange rate USD$1 : GBP 0.6)
When you sell back the USD in exchange for GBP,
You have …..USD$1,000 * 0.6 = GBP 600
Henceforth, you made a profit of GBP 100
I hope this helps to clarify your doubt a little…….
Of course, there’re more than meeting the eye for forex trading, which includes the spread between Sell and Buy price, the amount of leverage provided by the brokerage house, Stop-loss, Sell-Stop etc…..
To learn more about Forex Trading, you may want to visit http://www.babypips.com or http://www.dailyfx.com.
To learn a method for the Automated Forex Trading at your own time and pace, you may want to visit the below resource for more information.
August 27th, 2008 at 9:56 am
If you want to know how it works, then visit the below link, you will find some useful information:
http://online-fx-trading.net/basics-of-forex
August 27th, 2008 at 9:56 am
The Forex Market is about the exchange of currencies, in order to profit from this market’s volatility. When a trader is considering the purchase or sale of a certain currency, he speculates on the possible rise or fall of one currency in relation to the other. The trader can profit by the market’s movement whether the market rises or falls.
For a newbie like you, I think you should work on demos first. this way you will learn trading and can enhance your skills. Forex trading is best in terms of earning. you can get tips for this blog:
http://forextradingguru.blogspot.com/
I found an interesting blog which has her experience of forex trading and call this market as money multiplier market. These explain the forex market, tools indicators, current forex market updates etc…..
http://forexmoneymaker.blog.com/
Regards