Lesson 4 - Example Forex trading
There are many different currency pairs in the market but you should focus on the major currency pairs related to the US dollar. That is the major currency pairs with the flexibility and high liquidity. This allows you as a trader have a better chance to make a profit.
The selected currency pairs traded popular in the market as: EURUSD (EUR and USD), USDJPY (Dollars American and Japanese yen), USDCHF (US dollar and the Swiss France), USDCAD (US dollar and the Canadian Urban), USDAUD (US dollar and the Australian Capital), GBPUSD (British Pound and US dollar).
You ask yourself the very essence limits yourself and become an expert in just a few currency pairs that you want to trade.
EXAMPLE wITH yOUR pURCHASE oF COMMON EURUSD currency pair:
When purchasing currency is always thinking about money left
at the time of with rate: EURUSD 1.2142 / 1.2145
you judge, said the euro will tend to rise in the near future, so you enter the market in a position to bUY, bought 100,000 EUR at 1.2145
a. / Just as received your provisions, the Euro rose to 1.2205, trading close to you by the word (close)
profit / loss: 1.2205 - 1.2145 = 60 pips
value of 1 pip converted corresponding transaction volume is € 100,000: 10 USD / pip.
Profit you get is: 60 * 10 = 600 USD
b. / you guess wrong, the euro fell to 1.2100, trading close to you cut losses (close)
Profit / loss: 1.2100 - 1.2145 = -45 pips
Price 1pip converted value is $ 10
the amount you lost is: 45 * 10 = 450 USD
Above is a simple example of foreign exchange trading and seek profit from the forex market. When participating in trading on the floor, you just need to analyze and identify trends to accurately place a search for profit, all profit and loss calculations exchanges are calculated automatically and displayed clearly so you can monitor your transactions. Also Mercantile Exchange also allows you to set stop loss orders and take profit on each transaction automatically when you do not have the track directly on the floor. The most important work when you join Forex trading is monitored, analyzed to identify the business strategy and the most effective, minimize risk and maximize profit.
Good gold trading - forex success!
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