A Blog About Tech Tips & Tricks, Health, How To & Blogging

Simple Guide on ‘Forex Trading’ for Beginners

forex trading

What is Forex Trading (for Beginners)

Forex Trading is the thing of trading currencies from different countries against each-other. Forex is an acronym of Foreign Exchange. For example, In Europe the currency is known as the Euro (EUR) and in United States the currency is known as the US Dollar (USD). An example of the forex trade is to buy Euro while simultaneously selling the US Dollar. This is called the going long on EUR/USD.

How Does ‘Forex Trading’ Work?

Forex trading is typically done through the broker or market maker. Being a forex trader you can also choose the currency pair that you expect to change in the value and place the trade accordingly. For example, if I had purchased 1000 Euros in January of 2006, it would have cost me around $1200 USD. Through-out 2006 the Euro’s value vs the U.S. Dollar’s value increased. At end of the year, 1000 Euros was worth $1300 U.S. Dollars. If we had chosen to end our trade at that condition, we would have a $100 profit.

Forex trades can also be placed through the broker or market maker. Orders can placed with just the few clicks and a broker then passes order along to the partner in Interbank Market to fill your’s position. When we close our trade, broker closes the position on Interbank Market and credits our account with loss or gain. This can all happen literally with-in a few seconds.

If you know more about Forex Trading, let us know in comments!

  1. nancy john says

    Forex trading is a zero sum game. For every long there is also a short

    Dealing With Your Losses

    1. varundeep singh says

      Thanks nancy for your comment.

  2. Nancy khan says

    The first reason to use Zulu4me’s ranking is because it is freeNew trading systems and methods. You do not have to pay to use our ranking,Trading systems and methods you just need to create a Demo Account in Zulutrade through us.Zulutrade vs etoro This way, you do not need to study more than 20.000 traders,Zulutrade classic you just need to study 20 or 30 traders. Finally, if even knowing that a personal assistant will help you,Zulutrade performance you are still not sure about Zulu4me advantages,Zulutrade alternativeyou should continue reading this post.

Leave A Reply

Your email address will not be published.