Forex Market

How to make money in the forex market

How to make money in the forex market


Here is an example of currency trading. You decide to buy 1000 euros to US dollars. EUR / USD exchange rate at which you can buy at the moment is 1.4500, which is why you pay $ 1,450.

Later, the exchange rate EUR / USD in which you can sell the euro for the dollar is 1.5500. You sell your € 1,000 and you get $ 1,550. Since starting with $ 1450, and now you have $ 1550 - that has made a profit of $ 100. Moreover, the EUR / USD pair which can sell for USD is 1.3500 euros.


How to make money in the forex market, Forex Market,


 The sale of its 1.000 € and receives $ 1,350. Since he started at $ 1450, and now has $ 1.350 - who have achieved a loss of $ 100.Este wins or loses money in the forex market.

The difference (spread)

If you look at the odds on your forex trading platform it will be seen that there are two prices for each currency pair. One is the price at which you can buy, it is known as the claim price and the second, which can be sold, known as the cost of the proposal (bid). The inequality 2 prices are known as the difference (spread). demand price is always higher than the bid price.





Leverage

If your forex broker offers leverage of 1: 100, you can produce much more money than it has. This means that if you want to buy 100 000 EUR / USD should have only one 000. With this kind of leverage that can take a position with 100 times the highest value and with a score of 100 times the gain or loss, so to be very careful in trading.

Make your first transaction currency

To begin, open a free demo account and log in. Then select the currency pair (eg EUR / USD), select the number and press Buy. Now you are in the game! They are playing an endless number of people of people in the world. Could you make money if the EUR / USD rises? Check your current profit in the window with open positions. This position can not hold as much as you want. And if you think you've earned enough, just closed its operation by pressing the "X" in the window to the open position.

long and short transactions

In the example above, we believe that a rise in the euro against the dollar, but we bought the EUR / USD in the hopes of later selling it at a higher price. This is called a long position. But what if we expect the euro to fall against the dollar? Then you do the opposite - sell the EUR / USD, hoping to find the next time to buy cheaper. Short-term trading allows you to make money when the exchange rate goes down.

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