What is Forex Trading: Forex is a short abbreviation for foreign exchange. Forex Trading is the knowledge and business of making money through trading foreign currencies or global currency exchange market where the trader buy and sell currencies.
How Possible To Make Money In Forex Trading
Forex trading is not an easy one but becomes very easy when you master the techniques. You can make money with forex trading if you are committed to online currency trading. You winning the forx market depend on you. 70% on the trader, 30% on the system. So if you win or loss depend on how you handle your trading.
How Does Forex Trading Works
Befor you start Forex trading there are basic requirement you need before you start forex trading. Apart from this requirements you have to make a brokerage account through your trader and make sure that this broker is associated with any financial institutions. The broker must be registered features commission merchant which are under and regulated by commodity feature trading commission (CFTC).
Fill out the you forex rading registration form so that you an access your forex account. When your account is active you can now start trading.
In forex trading there are highly traded currencies like Euro, Pounds, Dollars, Yen, Swiss Franc, Australian Dollar. But most are traded against dollar(USD).
Look at this pair "EURO/USD" the first currency is known as the base currency or domestic currency while the second currency is called the quoted currency or foreign currency. So in the market where you are trading Euro against USD and the value is 1/1.4424. these mean that the base currency which is EURO is 1 equivalent to 1.4424 in value of USD currency. The profit or loss in the trade is expressed n the quote currency. For example, if you bought euro-dollar at 1.300, and sold at 1.3010, your profit will be $0.0010 or 10 pip for each euro. more free on FREE TIPS