Trading
There are many companies on net talking about how you can earn money from FOREX.
What is FOREX?
Foreign Exchange (FOREX) is the Currecy exchange market which is the largest financial market in the world. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading currency for one another.
Short to point, you can gain or lose while changing the rate of currency. It comes with pair. For instance, EUR/USD pair, sell 1.3550 and buy 1.3554. which mean you are selling Euro at rate 1.3550 that is you are buying USD. Example, you sell $10000 Euro at rate 1.5000 which mean you are buying USD. When rate become 1.3000 then you closed the order, and you made profit of 10000 x (1.5000 - 1.3000 ) = $2000,let say if rate become 1.7000 and you close the order, you lose -$2000. More Simple example, when you sell Euro (i.e buy USD) at 1.5000, which is
1 Euro Dollar = 1.5 US dollar, you bought $15000 US dollar you paid only €10000 Euro Dollar , later then rate changed to 1.3000, which is 1 Euro Dollar = 1.3 US Dollar, you sell $13000 and you get back your initial €10000, leftover $2000 is your profit.
Need to spend $10000 to earn $2000?. Actually not, you can get leverage from you broker, like 100:1, 200:1, 400:1. Meaning you only have to spend $100 to buy $10000, but if rate drop till your margin which is your initial $100 then, you lost your $100. Example, you have 100:1 ratio leverage, and you sell Euro at 1.5000 rate for $10000,if the rate reached to 1.5100 then, you losing $100, it will automatically close your order because your used margin is only $100. if the rate up til 1.3000 then you sell, you will gain profit $2000.
So taking higher leverage is to risky but low initial budget to start. If you can effort it then better, because you can hold the currency till you lose $15000 which will never happened because your $15000 will never be Zero Rate. Then you wait to close till reaching your desired rate that can make expected profit.
For those who want to start with low initial budget then, should start with at least $300 or $500 where you need 50:1, 100:1, 200:1 leverage. Spending your time on studying currency exchange is betting gambling $500 bucks at casino.
If you want to know more about FOREX, read on wiki, google it, Try to understand and play around as DEMO account which is Free at following Trading Center. Also available as Trading Software, Mobile Real-Time Trading Applications and browser based java trading platform are free.
Learn More At:
www.babypips.com/school
http://piphut.com
www.forexrazor.com
Here some recommended FOREX Trading Centers:
Personally, I found above two sites are reliable, well-organized, no commissions, easy to use software, help services and training, their customer support always stand by to help you on your trading journey. And myself also using their service to do my trading online.
If you wanna know more about AvaFx and Easy-Forex, click on detials or straight away visit to their site to get more info.
Foreign Exchange (FOREX) is the Currecy exchange market which is the largest financial market in the world. Unlike other financial markets, the Forex market has no physical location and no central exchange (off-exchange). It operates through a global network of banks, corporations and individuals trading currency for one another.
Short to point, you can gain or lose while changing the rate of currency. It comes with pair. For instance, EUR/USD pair, sell 1.3550 and buy 1.3554. which mean you are selling Euro at rate 1.3550 that is you are buying USD. Example, you sell $10000 Euro at rate 1.5000 which mean you are buying USD. When rate become 1.3000 then you closed the order, and you made profit of 10000 x (1.5000 - 1.3000 ) = $2000,let say if rate become 1.7000 and you close the order, you lose -$2000. More Simple example, when you sell Euro (i.e buy USD) at 1.5000, which is
1 Euro Dollar = 1.5 US dollar, you bought $15000 US dollar you paid only €10000 Euro Dollar , later then rate changed to 1.3000, which is 1 Euro Dollar = 1.3 US Dollar, you sell $13000 and you get back your initial €10000, leftover $2000 is your profit.
Need to spend $10000 to earn $2000?. Actually not, you can get leverage from you broker, like 100:1, 200:1, 400:1. Meaning you only have to spend $100 to buy $10000, but if rate drop till your margin which is your initial $100 then, you lost your $100. Example, you have 100:1 ratio leverage, and you sell Euro at 1.5000 rate for $10000,if the rate reached to 1.5100 then, you losing $100, it will automatically close your order because your used margin is only $100. if the rate up til 1.3000 then you sell, you will gain profit $2000.
So taking higher leverage is to risky but low initial budget to start. If you can effort it then better, because you can hold the currency till you lose $15000 which will never happened because your $15000 will never be Zero Rate. Then you wait to close till reaching your desired rate that can make expected profit.
For those who want to start with low initial budget then, should start with at least $300 or $500 where you need 50:1, 100:1, 200:1 leverage. Spending your time on studying currency exchange is betting gambling $500 bucks at casino.
If you want to know more about FOREX, read on wiki, google it, Try to understand and play around as DEMO account which is Free at following Trading Center. Also available as Trading Software, Mobile Real-Time Trading Applications and browser based java trading platform are free.
Learn More At:
www.babypips.com/school
http://piphut.com
www.forexrazor.com
Here some recommended FOREX Trading Centers:
- AvaFx [WORLD FINANCE FOREIGN EXCHANGE AWARDS 2010] [Details] [Visit Site]
- Easy-Forex [Details] [Visit Site]
Personally, I found above two sites are reliable, well-organized, no commissions, easy to use software, help services and training, their customer support always stand by to help you on your trading journey. And myself also using their service to do my trading online.
If you wanna know more about AvaFx and Easy-Forex, click on detials or straight away visit to their site to get more info.
- AvaFx [WORLD FINANCE FOREIGN EXCHANGE AWARDS 2010] [Details] [Visit Site]
- Easy-Forex [Details] [Visit Site]
