introduction to forex trading

the base currency, and they get a bit confusing because they represent the dealers position, not yours. When investors trade forex commonly called FX theyre buying and selling currencies over the foreign exchange market. Examples of currency pairs include the EUR/USD, USD/JPY and USD/CAD, or a combination of any two currencies. The strategies and trading live forex trading stream plan should be tested for profitability in the demo account before making the switch to real capital. Lets go back to our earlier example. In stock trading, you might hear or read that a stocks share price went up a point,. . Since currencies trade 24 hours a day, these prices are always changing. You get to buy and sell currencies, see how it works, but all without losing any money. Currencies always trade in pairs, because when you exchange currency you need to exchange it for another currency (otherwise no transaction takes place).

Each evening, at 5 PM EST positions experience rollover or swap. If you are long (bought it) then you will look at the Swap Long number. Where things get hairy is that leverage mentioned earlier. If you sell the EUR/USD you are expecting the US dollar to appreciate versus the Euro (Euro fall). We will only get into that trade, and get that price, if the currency moves to the price of our order and someone is willing to take the other side of our trade (buy if we are selling or sell if we are buying).