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Understanding Forex Trading

Forex trading or currency trading is a business. With a turnover of more than $ 2 trillion per day, forex trading is the largest financial market in the world, much bigger than stock markets, commodities and other financial markets.

With the development of internet technology, now anyone can do it from home. Coupled with margin trading system by using leverage and a very small value of the contract, allow investors with relatively small funds.

One of the benefits the forex is a two-way trade. This means that, unlike conventional trade which always begins with the purchase and then sell, forex allows investors to sell first and then close the transaction by buying. Thus, regardless of market conditions, investors can always take advantage.
Example: If you predict the EURUSD will go up, then take the open buy position. If your prediction is correct, then when the EURUSD benar2 ride, then you get a profit by closing with close-sell transactions. Conversely, if you predict the EURUSD will go down, then take a position open sell, and close it with close buy.

EURUSD, GBPUSD and AUDUSD are examples of direct currency. That is, strengthening / weakening of the currency in the direction of the graph or dealing quote. For example: If the Euro (EURUSD) in dealing quote rose from 1200 to 1250, meaning the euro strengthened against the dollar. In the graph also charts the rise will be seen.

Conversely, for USDJPY (Japanese Yen) and USDCHF (Switzerland), up / down the value of a currency is not the direction to the graph or dealing quote. For example: If the USDJPY (YEN) in dealing with citations fell from 115.50 to 115.00, which means the YEN currency strengthened against the dollar. In the graph will look the graph to decline.

Before trading, it is imperative for you to have knowledge about forex analysis. There are only 2 kinds of analysis, namely Fundamental and Technical.
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