Basic Purpose of Forex Trading

Basic Purpose of Forex Trading : Expected goals for investor in the world is very important for the talk and important to learn forex trading for the player and the player will earn greater profits.

Goal in Forex trading is the investor to benefit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example today, the exchange rate of EUR / USD is 1.0857. This number is also referred to as the Forex or just "rate" for short. If the investor had purchased € 1,000 at that time, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR / USD ratio) increased in relation to the U.S. dollar. Investors are now able to sell € 1000 to receive 1208.30 dollars.

In the trade we can gain / profit of whether the market goes up or going down. Her way is by analyzing the Technical and Fundamental currency pair which will go up or down, and take the difference in profits.

If you believe the currency will strengthen (up) position immediately do buy, then wait for prices to rise, do closed (sell) when the currency exceeds the price of your purchase before. If you believe the currency will weaken (down) do sell position, wait for price drops, do closed (buy) when the currency price below you earlier.
In order for more details, see the illustration below:
  1. John got in position BUY EUR / USD at 1.3000, after a certain time John SELL (CLOSE) at 1.3064 then John 64 ​​pip profit / point (the smallest unit in forex). If John SELL (CLOSE) in 1250 then John suffered a loss of 50 pips
  2. Erik entered in positions SELL GBP / USD at 1500 prices, after a certain time, Erik BUY (CLOSE)  in 1400 then Erik get 100 pip profit / point (the smallest unit in forex). If Erik BUY (CLOSE) at 1.650 then Erik loss 150 pips

From the example above shows that you can make a profit in 2 directions. Just how the placement of your starting position.

Note, if you look inside the Meta trader application (app forex) then:
  1. The price used to OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is selling price (BID).
  2. The price used to OPEN SELL / SHORT is selling price (BID) and the prices used when you close / liquid is the purchase price (ASK).
How Forex Trading?
Forex trading is typically done through a broker or market maker. As a forex trader you can choose a currency pair that you want to sell / buy or trade.
With the development of internet technology, reservation and request transaction can be done just with a few clicks of the computer, and brokers become your business partner. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen within a few seconds.

Risk Trading
Is it true that forex is scary? Trading in this market is very risky and should not be attempted by
beginners without the help of a seasoned trader. If you are planning to enter the forex market, it is recommended that you should first learn about the forex market and how it works. In the forex market, you can easily make a profit and you can easily lose money anyway.

Forex trading can not be accurately predicted, then it can make you lose large amounts of money. Take classes that offer forex trading course is recommended in order to understand more about this market and learn how you can minimize losses and maximize profits.

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