From the Forex market you can buy or sell.
Opening a trade is very straightforward. The trade opening process is simple and if you have experience trading in the stock market you will understand it sooner. How to make a profit/loss in Forex?
Suppose you buy 1.1800 euros in EUR / USD at a market rate of 10,000 with $11.800 dollars. After fourteen days, the EUR / USD exchange rate rose to 1.2500.
Then in the event that you sell it for $12.500 dollars, you will make $700 dollars.
The exchange rate is the ratio of the price of one currency to another.
For example, The USD / CHF exchange rate indicates the number of U. come. 1 Swiss franc can be bought for USD, or 5 US. come. Just how much Swiss franc is needed to purchase dollars.
How To Read Forex Quotes
At each trade you buy one currency and sell another. Therefore, currency pair price quotes are expressed in the Forex market.
The foreign exchange rate of GBP / USD is as follows:
The currency before the slush (/) is called the base currency and the slot (/) currency is called the quote currency.
Here GBP is your base currency and USD is the quote currency.
At the time of purchase, the exchange rate indicates how many units of Quito currency you have to pay to buy a 1 unit base currency.How to make a profit/loss in Forex?
For example: 1.5125 US DOLLAR to buy 1 British pound. come. Have to pay dollars.
When selling, the exchange rate indicates how many units of quote currency can be obtained by selling the base unit currency.
For example: if you sell 1 British pounds, you’ll get 1.5125 US DOLLAR come.
Base currency is the basic basis of Buy and Sell. If you buy EUR / USD, then you are buying the base currency EUR and at the same time selling the quote currency USD.
In simple words, buy EUR, sell USD.
You will buy the currency pair if you believe that the base currency will be stronger than the quotes currency. You sell it if you think the base currency will be weaker than the quotes currency.
Long / Short (long / short):
First of all you have to make sure you don’t buy or sell.
If you want to buy (buying base currency and selling quote currency), that means you want the base currency to go up and you sell it at a higher price.
In the words of the traders, it is called long or long position. Remember, long = buy (long = buy).
If you want to sell (selling the base currency and buying the quote currency), that means you want the base currency to go down and you buy it at a lower price.
In the words of traders, it is called short or short position. Remember, short = sell (short = sell).
Bid / Ask (bid / ask):
How to make a profit/loss in Forex? All Forex Quotations show 2 prices. Bid and Ask. In virtually all cases,, the bidding price is lower compared to the Ask price.
Bid is a price at which a broker wants to buy a base currency instead of a quote currency. That is, the bid to sell is the best price.
Asc is a cost that a broker wants to sell at the base currency rather than the quote currency.. That is, Ask is the best price to buy.
The gap between bidding and Ask is known as spread.
The bid price for the above quotations EUR / USD is 1.3456 and the ask price is 1.3458.
That is, the spread here is 2 pips.
If you click on the market, you will sell it in 1.3456. And if you click left, you will go to 1.3458.