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Trading Forex is exciting business. The market is always on the move, and every tiny shift in currency rates can mean profits and losses of hundreds and even thousands of dollars.
Let’s demonstrate how that can happen!
In general, the eight most traded currencies on the Forex market are:
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Forex trading is always done in pairs, since any trade involves the simultaneous buying of a currency and selling of another currency. The trading revolves around 18 main currency pairs. These pairs are:
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When buying or selling a currency pair, each pair has its own Bid/Ask rate, for example:
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This means you could either:
OK, but where’s the opportunity for profit?
The currency pair rates are volatile and constantly changing.One way to profit is by buying a pair, then selling it at a higher rate.The second way is by selling the pair, then buying it at a lower rate.
next: [You must be registered and logged in to see this link.]
Let’s demonstrate how that can happen!
In general, the eight most traded currencies on the Forex market are:
[You must be registered and logged in to see this image.]
Forex trading is always done in pairs, since any trade involves the simultaneous buying of a currency and selling of another currency. The trading revolves around 18 main currency pairs. These pairs are:
[You must be registered and logged in to see this image.]
When buying or selling a currency pair, each pair has its own Bid/Ask rate, for example:
[You must be registered and logged in to see this image.]
This means you could either:
Buy the pair at the Ask rate
Which means: Buy 1EUR / Sell $1.5422
‐or‐
Sell the pair at the Bid rate
Which means: Sell 1 EUR / Buy $1.5420
OK, but where’s the opportunity for profit?
The currency pair rates are volatile and constantly changing.One way to profit is by buying a pair, then selling it at a higher rate.The second way is by selling the pair, then buying it at a lower rate.
next: [You must be registered and logged in to see this link.]
