Basic trading Knowledge of Forex

Basic trading Knowledge of  Forex Part-II

• You must have idea about Forex quote. In Forex quote you will see bid price in the left and sell price in the right.
• Then decide what currencies you want to buy or sell.
• Economy has a great factor in change of currency price. You need to make a good prediction about the economy of the US, if you want to buy US Dollars. If you think US economy will continue weaken then you should not buy rather sell if you have any.
• You should have a good idea about the trading position of the country. If a country has many goods to export then its economy will boom and their currency value will increase.
• Politics plays an important role in the economy of a country. If the political condition of a country remain calm. Then the economy of that country remain stable.
• Keep up to date with the economic report of the country.

How to calculate Profit:

You come to this business to get profit. If you do not get profit that business will not be interesting to you.

• A pip measures the change in value between two currencies. Usually, 1 pip equals 0.00001 of a change in value. For instance, if your EUR/USD trade moves from 1.546 to 1.547 your currency value has increased by 1 pip.
• Multiply the number of pips that your account has changed by the exchange rate. This calculation will tell you how much your account has increased or decreased in value.

Analyze the Market:

There are several methods of analyzing the Forex market:

 Technical Analysis: 

Technical analysis involves studying of price movement of the currency. With the charts and historical data you can predict the movement price based on past experience.

Fundamental Analysis:

Fundamental analysis involves the whole study of economic and social condition of the country. Fundamental analysis can play a vital role in your trading. It will help you to make correct decision.

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What is Forex
Start Earning By Forex
Basic Trading Knowledge of Forex

Basic Trading Knowledge of Forex

 Basic Trading Knowledge of Forex

Those people who are dreaming to boom their earning within in a short time, Forex is the correct place for them. But, one thing should be kept in mind that where there is a chance of earning  a handsome money, there is also chance of loosing money. Forex can make you rich within in a short time. Again , it can snatch from you what you have. Forex is a risky business, but if you have sufficient knowledge about trading you can be successful. Before starting Forex you need to make some analysis. To understand Forex you need some basic knowledge.

Forex Trading Basic:

• There are two types of currencies- Base currency and Quote currency. Base currency is that currency which you are selling and Quote currency is the currency that you are purchasing. You can buy 1 currency in exchange of another currency such as- Dollars with Pound.
• In Forex, you will see exchange rate which can tell you how much you need to spend to purchase a base currency. An example can clear your confusion. If you want to buy Us Dollar with British Pound you can see exchange rate like this GBP/USD= 1.450. This means you can buy 1.450 Dollars with 1 British Pound.
• If you want to buy base currency and sell the quote currency you can see the term long position which means you want to sell US Dollars and buy British Pound.
• A short position means you want to sell base currency and buy quote currency. That means,you would spend British Pounds to buy US Dollars.
• If your broker is willing to buy base currency in exchange of quote currency that is called bid price. It is the best price in which you want to sell your quote currency.
• There is another term that is offer price which your broker want to sell base currency in exchange of quote currency.
• And the last one is spread which is the difference between ask price and bid price.

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what is Forex

Basic Trading Knowledge of Forex

Start Earning with Forex

Easy Way to Make Money

Forex Trading

Foreign Exchange Trading which popularly known as Forex Trading is a way to exchanging currencies through the brokers.  In this era of information and technology it is easy for the people to make money at home. Forex is the wonderful way to make money with little investment. You can earn money just by several clicking. As it is related to exchanging of currencies from different countries, so you can make a good profit . But it also risky. If you start trading without having enough knowledge about it, you may be the looser at the end of the day. In this article I will try to provide a vivid idea about Forex Trading.

Forex Market:

A Forex Market is a place where buyer and seller meet to exchange their currencies. For example, you can buy US Dollars in exchange of Euro. By the course of time, trading has become easy due to the advancement of technology. Previously, the rich people can trade only in a Forex Market. But, people can start trading just from 10 Dollars. Anyone from the any part of the world can trade on Forex, if he can manage a computer and an internet connection.

How does it work:

Forex Trading is not so difficult thing unless you have patience to learn it. Basically, it is done by a broker or market currency pair that you would like to change. For example, if you think that the rate Euro will increase against Dollars then you should buy Euro and wait for the result. If you purchase 1000 Euros in March with 1200 Dollars and Euro value is increased throughout the March. At the end of the March 1,000 Euros was worth $1,300 U.S. Dollars. If you had chosen to end your trade at that point, you would have a $100 gain.

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