What Is FOREX or FOREX MARKET? PART I
shine india
monthly magazine Example: suppose you had $1000 and
bought Euros when the exchange rate was 1.50 Euros to the dollar. You would
then have 1500 Euros. If the value of Euros against the US dollar increased
then you would sell (exchange) your Euros for dollars and have more dollars
than you started with. Example: You
might see the following: EUR/USD last trade 1.5000 means One Euro is worth
$1.50 US dollars. The first currency (in this example, the EURO) is referred to
as the base currency and the second (/USD) as the counter or quote currency. shine india
monthly magazine online The FOREX plays a vital role in the world economy and there will
always be a tremendous need for the exchange of currencies. International trade
increases as technology and communication increases. As long as there is
international trade, there will be a FOREX market. The FX market has to exist
so a country like Germany can sell products in the United States and be able to
receive Euros in exchange for US Dollar. RISK WARNING:
shine india
monthly magazine subscription Risks of currency trading Margined
currency trading is an extremely risky form of investment and is only suitable
for individuals and institutions capable of handling the potential losses it
entails. An account with an broker allows you to trade foreign currencies on a
highly leveraged basis (up to about 400 times your account equity).The funds in
an account that is trading at maximum leverage may be completely lost if the
position(s) held in the account experiences even a one percent swing in value.
Given the possibility of losing one's entire investment, speculation in the
foreign exchange market should only be conducted with risk capital funds that,
if lost, will not significantly affect the investors financial well-being
shine india
monthly magazine in telugu.
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