How do you make money in FOREX?
t’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.
In this case what would happen
In this case, the market allows you to take that currency pair at the price that’s found; with the commitment that you return them in the future in advance. A part of Visas that are at a price, for example of 10 points and if you believe that the price of That currency would fall then sell That pair of Currencies even if you don’t have them and when the price of the pair of Currencies falls, for example to 5 points shopping for the end earn the difference between buying and selling 5 points, that is, you sold high to buy cheap.
Here somehow you borrowed that pair of Currencies to fulfill the sale and you delivered them again the day you completed your operation. The market movements both downwards depend essentially on the supply and demand of those Currencies the price of a pair of Currencies go down due to the strengthening of one of the two involved. for example when we’re in the Euro dollar pair and it has a launch movement it’s because the dollar is strengthened against the Euro that is, the dollar has risen in value, but when This part of the movement was the euro that was strengthened against the Dollar In other words, the dollar decreased its value and so it’s with all Currencies.
3 TIPS TO EARN EASY MONEY
1) It’s the size of the operation, it’s very important to define well, what size of operation you’re going to take that means that for example in the Foreign Exchange Market in forex, you can enter with 0.1 lots or with 0.01 color would be to enter With the mini or micro lot because micro child Because that’s what it’s called when you enter with a score of 0.0 138 an account allows operations this small, but if you enter with 0.1 it’s an account.