Forex Trading 101 - What Is Selling And Buying

Maybe it's the case in your country too, many people want to make a new profitable income from the Forex marketplace. People like you and me want to do it, large corporate want to do it. In fact, most of the institution like banks and insurances make millions on this currency trading marketplace. But for ordinary people, this is a good way to make a home-business at home, easily and without spending too much money at the beginning and without losing your current lifestyle.

If you speak with any traders, you will shortly know that the Forex market is one of the most profitable marketplaces out there. Without the internet, this huge money-making marketplace would always be the sole domain of large institutions. In the USA, for example, we can name the Federal Reserve Bank. They make money for themselves with your money and then they give you nothing back. Now, you can simply go online, open an account and shoot for your first currency trading. One important point you have to know is that those large companies are making tons of money because they can invest your money; I mean millions and billion of dollars. However, you can take your share, and you must take your share now because with a limited investment you can start making a 3 or a 4 digit your very first month...

... The only things you have to know or to follow are 2 or 3 tactics to master. You see, it can be a new stable source of income for you and for your family.

As the Forex marketplace is a colossal market with billions of dollars traded every single day by large institution, you can bet that they want a lot of money. That's the main reason why there are very few commissions and fees on this market. It is not the same thing as the stock market. You do not have fees for that and fees for this. You only pay a commission on your bids.

You have 5 popular currencies: Swiss Franc, Euro, British Pound, Japanese Yen and the US Dollar. We can say that today those five currency accounts for 60% to 70% of North American trading. You have many choices when you enter the Forex market. We can also name other currencies like the Canadian, New Zealand or the Australian Dollars.

Buying means that you acquire a currency from a selected currency pair to open the trade and selling short means selling a particular currency to open a trade. When you buy, the currency pair has to increase with time to make a profit (you buy cheap and sell high, as they say). If we take the example of selling short, we are going to make money when the currency pair decreases with time. When this is the case you bought it back at the new price. At this moment, you can sell the currency at your previous price when you had opened your trading. Your profit is the difference between your short selling and your buying. I know it can be confusing but when you will be in front of your Forex chart and in front of your bank account it will look much simpler.

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