Forex Trading is trading currencies from different countries against each other. Forex’s meaning is the Foreign Exchange.
For example, in Europe the currency in circulation is called the Euro (EUR) and in the United States the currency in circulation is called the US Dollar (USD). An example of a foreign exchange trade is to buy the Euro while concurrently selling United States Dollar. This is called going long on the EUR/USD.
How Does Forex Trading Work?
Forex trading is normally done with a broker or market maker. As a foreign exchange trader you can select a currency pair that you anticipate to change in value and place a trade appropriately. For example, if you had actually acquired 1,000 Euros in January of 2005, it would have cost you around $1,200 USD. Throughout 2005 the Euro’s value vs. the U.S. Dollar value increased. At the end of the year 1,000 Euros was worth $1,300 U.S. Dollars. If you had picked to end your trade at that point, you would have a $100 gain.
via WordPress http://ift.tt/1yvZ7Pc
via Tumblr http://ift.tt/2mLsnSU
No comments:
Post a Comment