Question by Evan M: How does currency trading like Forex work exactly?
I understand that you buy currency in “lots” and depending if they go up or down in value you make in profit or loss.
I just don’t understand why the currencies are paired like “EUR/GBP”.
Can someone help me understand the actual process taking place when people trade currency?
Best answer:
Answer by sham
forex trade i s very simple….read this web page …………http://foreignexchangebasics.blogspot.com/
What do you think? Answer below!
{ 3 comments }
The pair is made up 2 currencies – your are trading the first one as expressed in the value of the second one. It’s the exchange rate of the first into the 2nd.
For EUR/GBP, you are trading Euros as expressed in value in Pounds. 1 EUR = x GBP
For EUR/USD, you are trading Euros as expressed in value in US dollars. 1 EUR = x USD
If you are a beginner, i suggest you to use Marketiva, which is a very good platform to start trading with and very easy to use.
Marketiva gives you 5$ real to start trading so you don’t have to deposit and if you made profit from it you can cash out, this is why it’s very good for beginners. Their platform is very easy to use and they have support during trading hours for your questions, doubts etc.
They also have chat channels where you can talk, exchange opinions and ideas with traders of your country or international traders.
To open your account please visit http://bit.ly/cnW2mV
In simple word:
EURGBP = you have / use EUR to buy GBP, the exchange rates is 1 EUR = xxx GBP
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