All About Forex - What You Need To Know

In order to succeed successfully in forex trading you need to know what the
purpose of trading forex is. Forex trading as you know is the trading of
online currency and the key to success is to buy low and sell high just as
with any other market. You task as a forex trader is to try to determine the
trend of the particular currency you are looking to either buy or sell and
to utilise the forex trading strategies to ensure that a profit is made.

Now that you know the purpose of forex trading the next step in knowing all
about forex is to understand the codes, definitions and numbers used when
trading. All currencies used in forex trading are assigned a three letter
code. An example of this is the US dollar which is USD or the Euro EUR.
Online currency trading is done in combinations that are known as a cross
and these are represented by 6 letter words with the more expensive currency
coming first. An example of this is GBPUSD which will show you how many US
Dollar you will need to pay for one British pound. These rates are shown as
five digit numbers for example GPBUSD = 1.6262 which means that 1 British
pound is worth 1.6262 US dollars. When the rate changes the change will be
displayed in bold, eg GPBUSD = 1.6264 which will mean that the rate has
moved by 2 points. Knowing this is the key to successful forex trading and
your key to profit.

When you enter the forex trading market you will enter as a buyer or a
seller of a particular currency. If you are a seller you price is known as
the ASK price and the buyers price is known as the BID. You can only buy
currency from a seller with an asking price the same as the BID price.

These are the main beginner's points to note when it comes to forex trading
and knowing what the purpose of trading forex is and knowing all about forex
before you enter into the market can make a big difference when it comes to
your profits.

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