Notes

Forex Currency Trading Tips

<p> forex currency trading is the biggest trading market, open all day long, twenty-four hours a day, five days a week. It's also the largest liquid market and so offers the greatest opportunity for hefty gains. A forex currency trade typically involves the US dollar and/or various other global currencies. The first currency in the pair, for example, the British pound at USD/GBP, is usually the major base currency.</p>
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<p>Forex traders buy one currency and sell another. They usually use three methods to do this: the spot (where you buy low and sell high), the carry (where you buy and sell high) and the cross (where you buy high and sell low). If you buy a currency A and sell currency B, you make a profit. If you buy a currency A and sell currency B, you lose money. The spread, which is the difference between the asking price and the bid, is where you stand to make the money. Brokers earn their commission when you make a profit or loss.</p>
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<p>In the Forex market you can buy and sell currencies as part of the huge global market, but unlike the stock market you don't need to actually own the currencies you want to trade. Instead, you choose which currency you want to trade, and then find a broker that trades in that currency. When you place a trade, the broker sells the currency for you and then the banks or financial institutions that supply you with the money transfer of the price change to the selling currency, causing the price of the currency to rise. So what you're paying for is for the ask price, and for the ask price and the market order, plus your broker's fee. If you then buy the currency back, you'll lose money because the price drops.</p>
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<p>So what's involved in trading forex currency? Basically, when you put a trade on, you're buying currency at the current price and then selling it back once it gets close to the ask price. The two most common forex currency pairs are the USD/EUR and the USD/JPY. These two currency pairs make up the vast majority of the forex market. However, there are other currencies being traded on the forex market every day as well.</p>
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<p>Most people who trade on the forex market start out by opening a free account. The forex broker you use will take care of everything else - providing you with a brokerage service and marketing you the currencies you wish to trade. The only other thing you need to do is invest your money. Of course, you should always check the rates yourself before parting with your money. There are a large number of currency brokers to choose from, so you shouldn't have any problems finding one that you can use successfully.</p>
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<p>Some popular forex currency pairs are the EUR/GBP, US dollar/Japanese yen, EUR/CHF, US dollar/EUD and GBP/Japanese yen. One very important thing to remember when trading on the forex market is that you only switch currencies if the prices of one currency drop to a certain extent. If you see a currency you'd like to invest in falling, you don't necessarily want to sell all your assets and unload all of them. Instead, wait for the price of the second currency to rise above the first currency.</p>

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