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FOREX TRADING
WHAT IS FOREX TRADING:
FOREX is an acronym for foreign exchange.
It is Simply the trading of
currencies against the other,currencies of different
countries.
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 forex trade is to
buy the Euro while
simultaneously selling US Dollar.
This is called going?
You trade Forex
through a broker or market
maker. A trader you
chooses a currency pair expected to appreciate in value over a period of time then
place a trade on the choosen currency. Lets say you purchased
2,000 Euros in the month of may 2011,at
$2,400 USD. Then in the month of july
Euro’s value vs. the U.S.
Dollar’s value increased thato 2,000 Euros is now
worth $2,600 U.S. Dollars. If you
had chosen to end your trade at
that point, you would have made
$200 gain. It take little amount of money to place an order.The broker
then passes the order along to a
partner in the Interbank Market
to fill your position. 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 few seconds.
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