Abdulmajidkhs
Well-known member
Beginners guide to forex trading
So, at his point you have heard a thing or two about trading and you want to get involved, but everything is up and the air and you can't get a clue where to start. Do not worry. I am here to help. I will quickly summarize the important aspects of forex trading and help you get on the right track.
What is forex trading?
Forex trading refers to the buying and selling, or better yet exchange of currencies. As a forex trader you buy or sell currencies with the hope to make a profit from the increase or decrease of a currencies value. Lets use an example to better relate this idea.
Lets us say you are going on holiday to China. You are going to need Yens in order to be able to purchase anything in China. You will use say 5 of your currency to buy 6 yen. Now you go to China and come back but you do not use the yen you bought. You have to exchange it back to your currency but you then learn that since your visit to China the Yen increased in value so instead of 5 of your currency you get 7 back. You have made a profit of 2. That is essentially what you do with forex trading. You are buying or selling a currency at its current price with the hope that it will rise or fall and earn you a profit from the difference in price change.
Beginners guide to forex trading
So, at his point you have heard a thing or two about trading and you want to get involved, but everything is up and the air and you can't get a clue where to start. Do not worry. I am here to help. I will quickly summarize the important aspects of forex trading and help you get on the right track.
What is forex trading?
Forex trading refers to the buying and selling, or better yet exchange of currencies. As a forex trader you buy or sell currencies with the hope to make a profit from the increase or decrease of a currencies value. Lets use an example to better relate this idea.
Lets us say you are going on holiday to China. You are going to need Yens in order to be able to purchase anything in China. You will use say 5 of your currency to buy 6 yen. Now you go to China and come back but you do not use the yen you bought. You have to exchange it back to your currency but you then learn that since your visit to China the Yen increased in value so instead of 5 of your currency you get 7 back. You have made a profit of 2. That is essentially what you do with forex trading. You are buying or selling a currency at its current price with the hope that it will rise or fall and earn you a profit from the difference in price change.
Beginners guide to forex trading