Free Forex Education
How to trade Forex?
You need to understand the very mechanism of trading on Forex market. Let’s start from the most important.
If You are a newbie in Forex or a trader who has a certain experience in it and who is longing for mastering the technique of earning on Forex market, then You understand for sure that it is not so easy and it is much more harder to learn the very profitable trading. And if You have ever heard from anyone a contrary statement, that Forex is an easy way for multiplying assets, then we will tell You the whole truth: “You should work tooth and nail”. Forex, is just as any other occupation, demands a certain, it is even better to say, supreme efforts, before it begins to give You profit. That is why we would like to tell You in the sections of our site, not only how to snatch a large sum on Forex easily, but how it is possible with minimum efforts and even with maximum allowable readiness, to examine following: what is Forex, and how it is really possible to make money on it. As a result, You can gain a profit which is deserved by your skills and knowledge. Now then, we should not, probably, waste our time on different kinds of frightful or seducing stories, but we should start working at once. And we will begin our acquaintance with Forex with the explanation of the lexical origin of this word. Forex (often FX) – is an acronym of the word combination FOReign EXchange. If we speak about the very notion, then Forex is a market of interbank currency exchange where one currency is sold or bought for another currency. That is why we can often meet such phrases as «Forex Market», or «FX-market». And since each of us have happened to be in the market, then You certainly understand, that before sitting down at the PC and beginning trading Forex, You pretty often face with this phenomenon in Your daily life. For instance, You go to the market and buy tomatoes for $10, after that You go to the private store and there the same tomatoes cost $15. In other words, if You were the owner of the store You could have made good money on a such price’s difference. Of course, Forex has a certain distinction from the common trade of tomatoes, just in the fact that it is a Foreign Exchange, so let us take a look at this notion on the example of currencies exchange of two different countries. Imagine, You go to Germany and take with You $1000, but in Germany, as we know, euros are used. Hence, to buy food, souvenirs, or even to pay for any extra charges you need to exchange dollars for euros. To do this you go to the currency exchange office or to the bank, and buy for $ 1000 EU900, but it happened so that You did not spend this money. Having spent one month in Europe, You come back home, but beforehand You decide to exchange back Euro to Dollars and You got known that during Your stay in other country, the exchange rate of EURO has increased against Dollar, and EU 900 You have managed to sell for $1100. In such a way, You have spent the whole month with pleasure and at the same time You have even earned some money. Due to high volatility on Forex market such changes are much faster, and you might even earn more in a shorter period of time. Pay attention, please, that at the same time, together with volatility increase, risks are also increasing. Consequently, during the same short period of time you can make money or lose money. Because You should understand that currency exchange rate against the other currency can either grow or fall. In order to calculate the possible result of price’s change and then, of course, to make money on the difference of such changes, you need to master the technique of Forex trading. In what we hope to help You. So, let us make a conclusion. What is Forex? Forex - is a large market in which the role of commodities and monetary units are playing different currencies, and in order to master how to earn money, you need to learn how to choose the most appropriate time for buying or selling one currency for another at the most profitable price for you.