It’s the currency market, suppose that you’re going to buy dollars but you need to know its price; to know at what price is each of the currencies. It’s necessary to compare the price of another and know how much we could buy. For example, if you’re going to buy dollars or euros according to the exchange rate with € 1, you could buy $ 1.15.
That’s why in FOREX you’ll always see the Currencies in pairs and there are many possible combinations.
Now knowing this, let’s see how we can make money with forex in two simple ways; the first is with the purchase of a currency pair and the second is with a sale; short of a couple of prints I charge cheap and sell high. We’re going to see this in more detail and to simplify we’ll talk about points when you make a purchase of a pair of Currencies it’s because you expect this currency to increase in price.
For example, our pair of Currencies at a certain moment are worth 10 points days weeks months or years They’re worth 15 points, so you sell at that moment obtaining a profit of 5 points. It’s the same logic as when you buy a cheap house and as time passes it’s valued and that mask sells it. Now let’s see, what’s short selling is all you put in when you market.