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Now is the time to profit from Forex
In the following examples. We will use the method of fundamental analysis (fundamental analysis) to help in making any decision we will do, whether buying or selling.
If you tire of this malaise. Don't worry it will cover this topic in detail in a later lesson.
EUR/USD
In this example, the euro is the base currency, and the "basis" for purchase/sale.
If you believe that the US economy will continue to be weak, and it is bad for the dollar, and want to make a deal to buy EUR/USD. So, I have bought euros on hopes that they will rise up against the US dollar.
If you believe that the US economy is strong and the euro weaken against the US dollar will implement sales of euro/dollar. So I sold euro hoping it will decline against the US dollar.
This is one way to profit from Forex through buying a currency at a certain price when the price rises we sell again beneficiary from price difference.
USD/JPY
In this example, the US dollar is the base currency, and the "basis" for purchase/sale.
If you believe that the Japanese Government is working to reduce the yen to help the export sector, will implement the order USD/JPY. Through it you have bought dollars expected it will rise against the Japanese yen.
If you expect that Japanese investors will pull money out of u.s. financial markets, and convert all their dollars to Yen, of course, this will hurt the US dollar, will be selling dollar/yen. It has sold dollars expecting that it will decline in value against the Japanese yen.
That is also a way to profit from Forex, by selling the currency and wait until the price drops then we buy them again, of course, the difference between the bid price and the purchase is one of the most important means to profit from Forex
GBP/USD
In this example, the pound is the base currency, and the "basis" for purchase/sale.
If you believe that the British economy would have performed better than the us in terms of economic growth, will be ordered to buy the GBP/USD. Through it you have bought £ expected to rise against the US dollar.
If you believe that the British economy will slow down more, while the US economy is still strong, will carry out sales of GBP/USD. It may be expected that they will pound sold goes down against the US dollar.
USD/CHF
In this example, the US dollar is the base currency, and the "basis" for purchase/sale.
If you think there are overestimated the value of the Swiss franc will be ordered to buy USD/CHF. Through it you have bought dollars in the expectation that they will rise up against the Swiss franc.
If you think that the housing market in the United States will be the cause of weak economic growth in the future, and that will weaken the dollar, will implement a sell USD/CHF. It has sold dollars in anticipation that it will decline in value against the Swiss franc.
Margin trading Margin Trading
When you go to the supermarket and want to buy an egg, you can't just buy one egg, but a dozen or a lot of "lots" of 12.
In the Forex market, it would be a foolish person who wants to buy or sell € 1, so usually come in a lot of "lots" of 1000 units of base currency (micro) or 10,000 unit called (mini) or 100,000 called (standard), it all depends on the quality of your brokerage firm.
The question here, of course: but I don't have ten thousand euros for Forex trading?
You can do so has margin management capabilities (margin).
Forex margin system is simply a term used for trading with borrowed capital. This is how you make you able to open the package by $ 1,250 or $ 50,000 or even as little as $ 25 or a margin loan, you can make big deals and fast with a small portion of the original amount.
Let us explain more
Listen carefully because this is very important!
1. you see that there are signs in the market suggests that Sterling's rise against the US dollar.
2. open the standard lot (100,000 units pounds/dollars), buy in British pound bemargn of 2% and wait for the exchange rate to climb. When you purchase at once (100,000 units) of GBP/USD price 1.50000, you buy 100,000 pounds, worth US $ 150,000 USD
If the required margin 2% must be deposited in your account is US $ 3,000 to open transaction (US $ 150,000 * 2%). you control now only £ 100,000 with an amount of $ 3,000.
Anyway we will discuss broader margin later. But we hope you understand the basic idea.
3. have your expectations. And decided to sell on 150.0500 is now profit from FX 500 $.
4. When you decide to close your position or position, return the deposits that you made to your account and the profits or losses are calculated. And added to your account.
Roll over Rollover
Is the benefit paid or earns for open positions after 5 pm EST.
If you do not want to pay or earn any interest. Be sure to close all open positions by 5 pm EST. But it is also a means to profit from Forex.
As currency trading involves borrowing to buy one currency and interest charges is part of Forex trading. And pay interest on the currency that is borrowed.
As currency trading or Forex credit or borrowing used to finance the purchase of the other currency. The funds are part of Forex trading. It pay interest on borrowed money. And earn interest on deposited funds.
If you buy a currency with bank interest greater than the currency in which a
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