Want To Know How Forex Trading Is Done? I Got You Covered!

Getting to know and understand how forex trading is done isn’t really rocket science as most people might have had you think, you just have to understand how to trade the forex the right way, if you’re serious about making money trading currencies you could start your forex journey by enrolling yourself into some forex trading school where you’ll be able to get quality forex trading education on which to lay a solid foundation to build upon successful trading career.


Basically to trade the forex you’ll need to have a forex trading account with some forex broker, since you’re going to be buying and selling currencies in the foreign exchange market, a broker would serve as an intermediary matching your trade orders with other interested parties, this is possible because of the broker’s access to the interbank network where currencies are traded heavily.

Just as the goal of any business typically is to make profits, the currency trading business is no different. In simple terms, the goal of any currency trader is to buy currencies low and sell them high to make a profit.

Say you wanted to travel to France on vacation; wouldn’t you like to do some shopping and other fun stuff on this exciting vacation? Am sure your answer’s yes, then you’re definitely going to need to have some Euros to spend to start with right? Yep!

So you purchase $10,000 worth of Euros at $1.36 for each €1 from some currency exchanger at the airport, you’ve got €7352.90 in your pocket and now you’re all set and ready to fly to Paris and have all the fun in the world. Bon Voyage Mon ami! :D

Fast forward a couple hours later, you arrive at the airport in France you go to the casino, play some blackjack and made some money nothing big but something to spend anyways and this continues for the whole of your vacation so you never had to spend the Euros you came with.

Now you’re back in the US and you want to exchange your €7352.90 to US Dollars from the same exchanger you bought them from just a couple of days ago. You find that the Euro has increased in value and now you’ll get $1.38 on each euro, so you did the calculations and got that the exchanger will be paying $10,147.00 for your €7352.90, excited now aren’t ya? :D

Hmm… that’s almost $150 in profits! That’s definitely not bad business considering you were only having fun the whole time; you’d been a currency trader but just never knew it!

Another Huge advantage of trading currencies is ‘Leverage’.

Currency trading is highly leveraged; profits as well as losses could be greatly amplified depending on the type of leverage that particular trading account operates on. 1:1000 leverage would give every single dollar in the trading account that that leverage is being used the power to control $1000 worth of currencies; this would give the $10,000 in our earlier example a purchasing power of exactly $10,000,000.

I must warn you though, leverage is a double edged sword that you should use very wisely, I generally advice newbie and beginner forex traders to use the smaller leverages like the 1:100 or 1:500 Max and this is if you’re trading a relatively small account (anything less than a $1000), the more your trading investment grows the lesser the risk you should be willing to take.

Unlike trading in the stock markets, trader’s have to ability to short currencies trading the forex. A forex trader can sell currencies high and buy them back when prices go lower as they might have anticipated and therefore profit from the difference. Currency trading gives you the option to make money in both up and down markets.

To successfully trade currencies in the spot foreign exchange market, you will have to acquire sound forex trading education just as you would any other professional field, if you can afford it, enroll into some good forex trading school, sign up to some trading courses/programs or maybe even get a personal Forex Trading coach to show you the ropes and guide you, this could considerably shorten your learning curve, the more you learn about how forex trading  actually works the more your trading skills and performance will improve.

But if you’re on a budget you can read my blog post on how to learn forex trading for free and this other one on the Top 5 Expert advice on How to Learn Online Forex Currency Trading the Right Way, am sure they’ll help you a great deal.

That’s all for now folks, I hope you enjoyed reading this post, please drop your comments and questions, I’ll get back to you ASAP, wishing you an exciting forex trading career ahead.

Cheers…

Discover My Amazing Breakthrough Formula That Helps Siphon Loads of Cash To My Bank Account From The Forex Market Name: Email: The 5-Part eCourse "Forex Earning While You Learning"

click here for your free autoresponder