Learn Forex Trading by knowing the past…
After the United States dropped the gold standard in the early 1970s, and also most of the worldwide currencies were fluctuated widely, Forex exchange market has begun. Many of the financial institutions noticed how quickly and enormously that a profit could be made by buying currency when it was devalued and selling it after it strengthened. This is the power of Forex that people could earn lots of money if they could predict the market trend.
Basics Currency Trading Information:
Recently, Forex handles more than $3 trillion in transactions every day, and it runs 24 hours a day, 6 days a week. The most popular traded currencies in today market are Euro, U.S. dollars, Japanese Yen, British Pound, and Australian dollar.
So, you might wonder who dominated the FX market. They are the followings:
1. International Banks
2. Government Banks
3. Investment Banks
5. Hedge Funds
Each transaction in Forex is handled in a pair that buy brics money means you buy one currency and sell another one at the same time. In other words, you believe that the currency you buy is goin to go up in value compared to the one that you are selling. If you have made the right decision, you will need to make another trade by reversing the direction, which is selling the currency you first bought and buying the one that you sold! This is a way that how you could earn profit from the Forex market.
Here is a great example which could demonstrate clearly on how this is going to work!
When you look at the chart, you will see a pair of currency like this GBP/EUR 1.3000, and this means that the cost of buying 1 British pound (GBP) is 1.3 Euros (EUR). If you believe that the euro will increased in value than the pound, you might want to sell 200,000 pounds or buy 200,000 euros. After you made the transaction successfully, you will keep track on the changes of the exchange rate. At the end, if you see the exchange rate change to this: GBP/EUR 1.4100 – this indicates that now the euro is worth 1.41, a profit of 0.11 per unit.
Remember, Forex trading is a huge market where you could earn lots of money; however, it is also a place where people could lose all their money as well. It is important that you know how to use all different resources such as the charts, the indicators, the signals, the update news and much more in order to analysis the whole market for making a smart investment.
which helps you to analysis everything and also do all the trading for you automatically!