Thursday, February 26, 2009

How you make money from forex trading?

When you do a forex trade, it means you buy a currency in exchange for another, hoping that the currency you bought will increase in value.

For example,
You bought 10,000 Euros at the EUR/ USD exchange rate of 1.80
In other words, you acquired 10000+ Euros at the expense of -18000 USD.

One hour later, you trade back your Euros back in to US dollars at the EUR/USD rate of 1.90
Which means you gave back 10000- Euros and gained back 19000 worth USD.

Your profit is ( 19000-18000= 1000) Thousand dollars.

Buy : EUR 10000*1.8 = 18000
Sell : EUR 10000*1.9 = 19000
Profit :1000

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