The purpose of forex is to profit from the difference of currency. How does forex work? maybe this question often pops into your mind, especially when you're just jumping. In this article we try to explain how to work forex trading briefly. In accordance with what we review in the article what is forex, foreign exchange trading or forex is a trading activity between one currency with the currency of another country. The goal is to benefit from the difference in currency movements. You make a buy or sell transaction on a particular currency pair (pair). The short reading is something like this:
You Buy EUR / USD transactions, meaning you buy the Euro currency and sell the US dollar. You Sell GBP / USD transactions, meaning you sell the pound sterling and buy US dollars. If you buy and price / chart moves up, or sell and the price / chart moves down, then you get a profit. But conversely if you buy transaction then price / chart move down, or sell and price / chart move up, then you loss. Let's say you make a buy transaction on GBP / USD pair at the price 1.52070, then turns GBP / USD pair moves up and you close the transaction at the price of 1.52400. Then your transaction gets a profit of 330 pips (52400-52070 = 330). Conversely, if it turns out price / chart in GBP / USD pair is moving down, then you get loss. During the transaction we have not lost, then it is still floating (floating) and still can change. Your transaction is only realized if you have close / liquid.