How do you make money in forex trading
The exchange rate will tell you how many units of the counter currency it will take to buy one unit of the base currency and vice versa. Remember when you were a kid and traded baseball cards with your friends?
Say you start with 1, U. You then hold onto your JPY for 2 weeks at which time your instincts prove correct because the U. There are several ways for you to make money on a Forex trade depending on whether you want to buy or sell the currency that is currently in your possession. Your strategy here would enable you to buy more JPY back once the price dropped. Just remember that long equates to buying and short equates to selling.
In the introduction to this article we told you that your goal was to earn pips. So, what is a pip? Put simply, a pip is the smallest price change that a given exchange rate can make. Your profits and losses can be calculated in terms of how many pips you gained or loss. A pip is derived by comparing the starting rate to the ending rate.
The difference between the two is how many pips you gained or lost. You should now have a better understanding of how you can actually make money as a successful Forex trader. Remember, Forex trading is NOT easy — anyone who tells you otherwise is lying. Carefully prepare yourself and learn all you can before trying to execute any trades with real money.
Once you feel comfortable then go out there and get all the pips you can! We respect your email privacy. Equities on the other hand are traded without leverage. Then pick a currency pair e. Now you are a trader in a market used by millions of people all around the globe.
Check out your current profit or loss in the Open positions window. You can keep this position as long as you like. And when you no longer wish to keep your position, just close your trade by pressing the X button in the Open Positions window.