What is Forex?
Forex is an Online Currency Trading business. We Know that Every Country has its Own Currency and there are Some ups and Down’s in Every Country Currency . So these Change in Currencies Can Make Lots of Earnings to Currency Traders. Forex is very Old Business and Many of Forex Traders Making lots of Money from it as it is Just Buying and Selling different Currencies Each other.
How it Operates?
There are Some Trading Platforms called Brokerage Companies that Enables Traders to Buy and Sell Different Currencies Online to Make Profit From it. That Brokerage Companies Take up a Small Commission from Traders.
Types of Currencies to Sell and Buy:-
There are four Currency Pairs that Traders can Buy and sell.
Four Currency Pairs Are:-
- GBD/USD (British Pound and US Dollar)
- EUR/USD (Euro and US Dollar)
- USD/CHF (US Dollar and Swiss Frank)
- USD/JPY (US Dollar and Japanese Yen)
These are Four Currency Pairs Used in Trading. In Every Currency Pair First Currency is a Commodity and the second currency is a Money. Suppose We Choose EUR/USD to Buy, When we Buy , we Buy Euro Against US Dollar and when we sell ,we sell Euro Against US Dollar.
How to Make Money with Forex Trading?
There is a Rule in Forex Trading that is Buying Low and Selling High.
Suppose We Buy Euro Against USD When 1 Euro is Equal to $1.20 USD And Sell it when 1 Euro is Equal to $1.37 USD. Here, We Made Some Profit By buying Low and Selling High.
Now , Question Arrives How to Predict When which Currency Will Rise and Makes us Some Profit.
This Can Be Predicted By Learning Technical and Fundamental Analysis.
Technical and Fundamental Analysis:-
Technical Analysis lets Traders Predict Currency Prices Using Indicators and Price Chart Analysis. Technical Analysis May be Difficult to Learn in the Beginning but Without Learning Technical Analysis No One can Earn a Penny on Forex.
Fundamental Analysis let Traders Predict Prices of Countries according to Political and Economic Conditions of the Country. Suppose there is Improvement of 3% in Economic Conditions of United States from Last Month that Means USD Prices Will Rise and Traders Starts Buying them at Low Prices and when Prices Rises they Sell them to Make Good Profit. That is Called Fundamental Analysis .
Now Both These Analysis Systems are Very Important to Learn for Becoming an Expert in Forex Trading and Start Making Money from it.
Positives About Forex Trading:-
1. There is No Need to have Big Money to Start Forex Trading. Anyone Having Good knowledge About Currency Trading can Start with Small Deposit.
2. There is No Competition in Forex Trading. Every Trader is Alone and it Depend on Traders Skills How Much Money he can Make with Trading.
NOTE:- Never Ever Try Forex When you Don’t know about it. It can Loose You Big Money. First Learn All Techniques of Trading and then Start With Forex.
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