How do we make money in Forex Trading?

So how do we actually make money in Forex trading?

In the forex market, we buy or sell currencies. The object of forex trading is to exchange one currency for another in the expectation that the price will change, so that the currency you bought will increase in value compared to the one you sold.

For example, you bought 10,000 Euros at EUR/USD at exchange rate of 1.1000.

So, you have -11,000 USD and 10,000 Euros for the moment

Few Weeks later, you exchange your 10,000 euros back into U.S. dollar at the exchange rate of 1.2000, and you get 12,000 USD.

12,000 - 11, 000 = 1,000 USD.

Now, you earned yourselves 1,000 USD because of different exchange rate.



Comments :

11 comments to “How do we make money in Forex Trading?”
Daniel parker said...
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"Forex trading is one of the most exciting industries in the capital market.
I discovered it several years ago and since I studied and studied it in depth. Thorough study of forex trading is an integral part of trading Forex.
Forex education is very important to give you an indication on how to trade forex and of course not, how to drive profits in this trade.
Good luck to all of us, and happy trading :)

Daniel parker said...
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Forex education

Unknown said...
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Never think of trading in terms of the greed factor; always think of the loss potential first. :)
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