Forex is derived from the word ” Foreign Exchange ” , which means foreign currency exchange , or the exchange of one currency to another , the initial objective was to payments abroad.
Price or exchange rate GBP / USD is now 1.5000
This means that 1 GBP = 1.5 USD
(1 GBP (pounds) if swapped into USD (dollars) to $ 1.5)
Now I have a capital amount of $ 150.
I predict that the exchange rate of GBP / USD Up
What I do is BUY GBP / USD or buy GBP using USD, in the sense of exchanging my dollars into pounds.
After the exchange, $ 150 I changed to 100 pounds.
After an hour the exchange rate GBP / USD rose to 1.7000
This means that 1 GBP = 1.7 USD
I need to do now is to SELL GBP / USD or exchange returned 100 Pounds which I hold to dollar.
Having swapped my 100 pounds into $ 170 (100 x 1.7)
BUY and SELL transactions within an interval of one hour of my capital was changed from $ 150 to $ 170, meaning I earn a profit of $ 20.
Note : small and large gains in influence leverage and lot.
if forex trading can provide a big advantage?
but on the other hand, forex trading can also lead to large losses as well.
not only a loss of money, but also a loss of invaluable time wasted.
Hence, the learning and knowledge of the forex became an absolute requirement that you must live first.
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