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Old 09-26-2017, 01:34 AM
g_nicks g_nicks is offline
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Join Date: Jun 2017
Location: New York
Posts: 31
Default Re: Forex Trading: Tips for Beginners

The Foreign Exchange Market - also known as Forex or FX - is a global market for currency trading. The foreign exchange market determines the relative values of different currencies.

Unlike the stocks and commodities market forex is a completely decentralized market which means that there is no central location and there are no formal exchanges where transactions take place. Practically all forex trading is done “over-the-counter” electronically by telephone, internet or in person.

Forex is a general term combining all worldwide financial institutions and organizations of all sizes into a single market place.

Investors profit by correctly forecasting future values of currencies. E.g. if you think that the U.S. dollar is going to increase in value against the Canadian dollar you can buy the USDCAD currency pair. If you are right and the value of the U.S. dollar increases you can sell the pair for a higher price.

Your profit is the difference between the purchase price and the sale price multiplied by the number of lots traded - trade size - or vice versa if you sell the pair short.
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