What the Forex Market is All About

Yesterday I briefly introduced the forex market. Today I want to go a little bit more in detail.

As you know, the forex market is where currencies are being bought and sold via a forex broker. After you sign up with a forex broker you make a deposit and you can start trading.

Forex trading is about selling one currency and buying another one. This is why forex price quotes go in pairs. For example, EUR/USD means how many US dollars are worth one Euro. When you use the "buy" command on this pair, you sell US dollars and buy Euros. Your main objective here is that the price of the Euro will rise in terms of US dollars, so you will make a profit.

After you achieved (or not achieved) your price objectives, you can "sell" the EUR/USD pair: you sell your Euros and get them in US dollars. If the price of the Euro increased, you get more US dollars. A profit!

Now that you understand how this works, sign up with a forex broker, ask the broker to open a demo account for you, and start demo trading. Don't put money right on the start. Get the feeling of the market first.

Enjoy,
Nadav

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