Forex Basics of Fx Trading

• The term Foreign Exchange means selling one currency and buying another simultaneously.

• Since currencies are traded in pairs, to profit from an exchange rate move you need to buy the currency that you expect will strengthen and sell the other.

• For example if you believed that the Euro (EUR) was going to appreciate against the dollar (USD) you would buy the EUR/USD; or in other words buy the EUR and sell the USD.

• Alternatively, if you believed that the EUR was going to depreciate against the USD then you would sell the EUR/USD; or sell the EUR and buy the USD.

• There is no need to wait for a bullish market to profit, for at any given

moment, one currency will be strengthening against another.

• The FX market is therefore constantly producing opportunities to invest.

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