Read this article with a little attention. Because if you understand it then you can understand how forex trade works. In a word we can say that you will understand about 5% forex trade. Almost everything is traded in the forex market, but most of them are trading in currency pairs. That is, it can be profitable by buying one currency against another. The biggest question is what to do for Forex Earning and how to do it? Let’s start from the beginning –
We all know one thing, “currency is ever changing”. Sometimes a particular currency is stronger than other currencies and sometimes it becomes weaker. You see in the newspaper that sometimes the dollar is going strong against the money, sometimes the money is going against the dollar. This is the rate of most currencies in the world and this is normal.
Now suppose you have 1 dollar (USD). You will exchange it and do the Japanese Yen (YEN). If the dollar is strong, you will get much higher USD / JPY exchange rates. Let’s say you pay 1000 yen for $ 100. Now you have 1000 Yen. When the yen continues to strengthen, you can earn more money by exchanging it against the dollar. This is the main source of Forex Earning.
Again, if you have bought a dollar, you can sell the dollar and buy the pound if the price of the pound (GBP) goes up against the dollar. Again, if strong against the pound-dollar, you can earn more dollars by selling the pound. Maybe you had $ 5 that you sold for £ 5. Later, after raising the price of the pound, it sold for $ 120. That way you can earn.
The Forex Market follows the same rules. That is, we can earn a profit by doing the following example (called trade). One thing is good to tell you, although Forex trading and the stock market in our country are very similar, there are some differences –
In our country’s stock market, we can profit only if the share price increases. For example, if you are trading on the DSE (Dhaka Stock Exchange) and if the shares of BRAC Bank are bought at 9, then you can profit only when the shares of BRAC Bank reach above 9. This means that you can only buy by profit.
But for Forex Earning you can trade on both sides – did you worry? Notice the following example:
For example, if you want to sell Google shares in the Forex market, you can sell and profit. Suppose you made a $ 800 quote to sell on Google’s shares. Now if Google’s share price drops below $ 800 then your profit is only. On the other hand, if you buy Google shares for $ 800 and your market price goes above $ 800, your profit is still there.
Understand that, you can trade on the two way in the Forex market and this is the most advantage of the Forex market. You can also make a profit by currency and sell it. So, in the Forex market, no matter whether the currency is strong or weak, we have the opportunity to profit, which is the biggest advantage of the Forex market. And that’s why everyone is very excited about Forex trading. For example, it is because of this encouragement that you learn patiently on our website.
If this article seems useful to your then please click the like button below. You can also share your valuable feedback or ask questions in the below comment section. Also, subscribe to our newsletter for trading-related updates.