Currency trading is about buying and selling activities. The theory is slightly similar with share market. To make profit, the way is to buy at a lower price and sell at higher price, or you can also sell at higher price first and buy at lower price.

Is this difficult? No, if you analyze the Forex market correctly and do the good trade at the good moment.

The reason why currencies are always quoted in pairs is because in every foreign exchange transaction you are simultaneously buying one currency and selling another.

An exchange rate is the ratio of one currency valued against another currency. For example, the EUR/CHF exchange rate indicates how many Euros can purchase one Swiss franc, or how many Swiss francs you need to buy one Euro.

When buying, the exchange rate tells you how much you have to pay in units of the quote currency to buy one unit of the base currency.

When selling, the exchange rate tells you how many units of the quote currency you get for selling one unit of the base currency.

Trading Basics:

  • Buy or sell (Long/Short)
  • Bid/Ask Spread
  • Power/Weakness of economy
  • How much money you have
  • Pips

Trading currencies will carry certain level of risk. Before trading, you should take consideration of your experience level, monetary objectives, financial management plan and risk-bearing.


For more information, please go to these resources:

Forex Open Market
Easy Day Trading
Exchange Rate Euros To

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Filed under: Forex Trading Basics

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