How Does Forex?

Forex Trading (Forex) is the exchange of one currency against other currencies in order to make a profit (profit) from the difference in currency values. For example:
A trader profits from the transaction BUY Pounds (Great Britain Pounds / GBP)
Trader What Do Great Britain Pounds (GBP) U.S. Dollars (USD) A trader bought 10,000 pounds in early February 2007 when the price of GBP / USD 1.9800. (Buy GBP / USD) +10.000 -19.800 * The next day, the trader 10.000 pounds to exchange back into U.S. dollars at a price of 2.0000. (Sell GBP / USD) +20.000 -10.000 ** In this example, the trader get a gross profit of $ 200. 0 +200
* $ 10,000 x 1.9800 = U.S. $ 19.800 (The trader to buy GBP 10,000 by way of selling U.S. $ 19,800) ** $ 10,000 x 2.0000 = U.S. $ 20,000 (Trader sells GBP 10,000 by way of purchase of U.S. $ 20,000)
Action Meaning Buy EUR / USD Buying EUR by selling USD Sell EUR / USD Sell EUR to buy USD

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