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Gamble or is it encompass with some knowledge, Let us understand the basics now in the Chapter 01
Forex is not a quick rich earning scheme it needs a clear vision and intelligence to understand the scenario of the market as how it really works. The misconception people possess should be dealt delicately as it needs a careful guidelines to achieve what you want to achieve.
The GBP/USD currency pair is known as the Cable in the forex market
Dealing in Foreign exchange in business simply called Forex Trading. Members who deal are called Forex Traders.
When you watch news in particular most of the channels will run a bar indicating the Foreign exchange value against your country currency. For example; US$ Rate for 1 US$ against your country currency value. Also, it will show many other main currencies. Such as British Sterling Pounds, Japanese Yen, UAE Dirham etc. That value floats every then and there as per the countries economical situation.
When country is in a good situation the exchange value for your currency rates become strong.
For example if your local currency rate today against 1 US$ is 225/= , and it may go above tomorrow to 225.50 /= or may be it come down to 221/=, it totally depends on the situation of both the countries.
Now! Suppose you have someone in your local market buying US$. You have $100 in you hands. If your currency value is 225/= today. Due to your bad country situation it may rise suddenly overnight to 365 tomorrow. Then it is a good idea to sell those USD and make it your local currency.
When you purchased that $100. You spent only 22500/= now it become 36500/- overnight. That says you earn 14000/= profit out of it. Interesting isn’t it.
Now we understood how Forex work and what is Forex is. Dealing in Forex is called a Forex Trading and if you deal with that you become a Forex Trader.
We just talked about what is going on here in general in above passage, Let us see what are the possibilities that we can do this trading. They way we usually go to the market to buy things and the way moneylenders get profit, here there is a little difference because usually you can get profit if you give it at a higher price that the bought price. In Forex Trading, whether the price goes up or down, you can get profit on both sides.
Read his interesting factors now! Sri Lankan currency floating is a good example due to the political crises happened.
In a scenario like that if you are living in Sri Lanka bought $1000 in January 2023 if you sell that US$ you will get less money, that says you’re losing 36,445LKR on the trading. Don’t forget the person gave you the Sri Lankan currency against US$ to you, He earned 36,445 LKR as a profit from that deal.
There are two ways to make profit from Forex trading.
So you’ve to be so good in analyzing the situation and possess a knowledge about the real situations in various countries, if you ever to deal with the currencies of those countries. Buying or Selling as it says Forex Trading.
Walk with us throug these learning chapters. You will understand how to decide what and when to buy and sell. We will guide you through each chapter with very clear information as this.
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HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided ‘as is’ solely for informational purposes, and is not intended for trading purposes or advice. Past performance is not indicative of future results.
