Here is how forex traders earn money :


Forex trading is what? Concretely, the answer comes in two words: it is buying and selling currencies, bar.

Currency speculation
Trading in the Forex market is fairly simple, the mechanics of a trade are similar to those of other financial markets (for example, the stock market), the object of the purchase or sale is Here a pair of currencies (one exchanges one currency in another) (on the stock market the object is the action of a company). The goal of a forex trader is to buy or sell a currency pair, he will then wait for the price to move ideally in his favor, so that the currency he bought takes value in relation to The currency he sold.

Example of forex trading
Imagine for a moment that you buy € 10,000 at the EUR / USD exchange rate of 1.1500, in this case you buy the euro and therefore sell the dollar. Concretely, you exchange get 10,000 € by selling $ 11,500.

A few hours later, your position of day rading is changing in your favor, the EUR / USD chart is at 1.1620 (and the price thus gained 120 pips) you close your trade and exchange your 10.000 € against 11620 $ .

The difference between your $ 11,500 invested is your $ 11,620 recovered after the transaction is $ 120, this is your profit. This is how forex trading works and how traders profit from this financial market.

How to know when to buy and sell?
You've figured out how traders do to make money on the money markets and wish to do the same, small problem, you do not know where to start? Know that one does not improvise not trader by slapping fingers. Buying and selling money markets in order to generate profits is learned, especially through trading courses and online trader trainings. Note also that the experience on a trading account at a forex broker is also significant and will greatly evolve and assimilate the knowledge exposed in the theoretical courses.



 
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