On Sunday 7 May, the French are heading to the polls again for round two of the Presidential election between the final two candidates Mrs Marine Le Pen and Mr Emmanuel Macron. Foreign exchange trading enables you to take advantage of rate fluctuations across a wide range of currencies. Forex is always traded in pairs - for example AUD/USD. You speculate on whether the price of one country's currency will rise or fall against the currency of another country, and take a position accordingly. Looking at the AUD/USD currency pair, the first currency (AUD) is called the 'base currency' and the second currency (USD) is known as the 'counter currency'.
If prices are quoted to the hundredths of cents, how can you see any significant return on your investment when you trade forex? The answer is leverage. Risk Warning: Derivative products are leveraged products and can result in losses that exceed initial deposits. Please ensure you fully understand the risks and take care to manage your exposure and seek independent advice if necessary.
The first time Rajibuddin Mandal, a family doctor in Birmingham, England, tried his hand at trading currencies online, he lost 2,000 British pounds. From that experience, he concluded that the foreign-exchange market was too big, too complex and too hazardous for amateur investors like himself. He decided he needed help from the professionals.
Government budget deficits or surpluses: The market usually reacts negatively to widening government budget deficits , and positively to narrowing budget deficits. The impact is reflected in the value of a country's currency. Forex trading involves trading currency pairs such as the EUR/USD pair (Eurodollar/US dollar pair) where a buyer of this pair would actually be buying the Eurodollar and simultaneously selling short the US dollar.
You will learn how to identify trading opportunities, how to time the market (aka smart guessing), and when to take profits or close a trade. With FBS it is easy to make money trading Forex. We strive to provide the best customer experience and give the widest opportunities to our trader!
