WHAT IS FOREX TRADING?

07.12.2020
Forex 101
FOREX trading is a currency based business.The rise and fall of the currency opens up opportunities for traders to make a profit by buying currencies at low prices and selling at high levels. The difference in value during the sale and purchase transaction is profitable if our decision is correct.The situation is like this, if you buy a currency and in a certain period of time the value of the currency increases, far exceeds the cost you used when buying it first, you managed to make a profit !.EXAMPLE OF USD CURRENCY RELATED TO YEN JAPANFor example, we take the US Dollar. To buy US Dollars, you need initial capital or purchase costs. For example you are a Japanese citizen. In 2012, to buy 1 US Dollar, you need a cost of around ¥ 80 Yen. That is the exchange rate for 1USD to ¥ 1 for 2012, roughly.In 2015, the increase in the value of the US Dollar caused the average exchange rate of 1USD to ¥ 1 has changed, where to buy 1 USD, the cost has increased when you need more than ¥ 80 Yen, but need to increase the cost to ¥ 120 Yen roughly.Wise Forex traders are those who bought the US Dollar in 2012 using the Yen currency, and resold it in 2015!.