When you begin trading the forex market, it is important to understand some of the basic terminology before you start investing your time and resources. When you begin trading the forex market, you are trading currencies.
“Let’s look at a situation where the U.S. dollar is expected to weaken in value relative to the euro.” “A forex trader in this situation will sell dollars and buy euros.” “If the euro strengthens, the purchasing power to buy dollars has now increased.”
The trader can now buy back more dollars than they had in the beginning, therefore making a profit. Read more…