what is forex trading???pls explain very basics.

@ramangill (1479)
India
September 2, 2008 4:51am CST
i have listened a lot about forex trading, but i only know it is something about selling one curreny and buying another. Please explain a bit more,,in very basics. that how we earn,which are the sites where we invest,etc,etc,etc thanx in advance.
5 responses
@iakulchen (615)
• Singapore
2 Sep 08
For currency trading you aren't investing in sites, it's more betting that a certain currency will rise or fall. example : Suppose the American dollar is worth $1.50 Singapore dollars. You have reason to beileve that the American dollar will drop compared to the Singapore dollar. So you exchange your American dollars for Singapore dollars. Suppose you exchange $1000 Amercian dollars to $1500 Singapore dollars. And the American dollar drops so that one American dollar is worth $1.25 Singapore dollars. You now exchange your Sinagpore dollars back to American dollars and you get $1200 Americna dollars, making a profit. I have simplified the example by ignoring all the charges involved, but I think this will give you an idea what currency trading is about.
1 person likes this
@ramangill (1479)
• India
2 Sep 08
yaah i got the idea,, i read about it on some sites. but what are the factors from where one guesses that wether the currency rate will rise or fall.
• Singapore
2 Sep 08
A number of things. The ecomic growth of a country compared to another country, whether a country is keeping it's currency articfically low to help exports, ecomic crisises, lots of factors determine whether a currency will rise or drop. It isn't easy, but hey, if it was, everyone would be doing it :P
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@ramangill (1479)
• India
2 Sep 08
yaah,,thats true?? but where to do the trade??? i mean like one mylotter above advised oanda.. is it gud??
• Philippines
8 Oct 08
I think I can understand 25% of the information. But can you please explain it to me what do you mean by "pips" and "1:500 credit leverage" and "floating loss"? So that I could understood FOREX trading for another 25%. I joined on Marketiva and FXOpen because i can start trade as little as $1.
@ramangill (1479)
• India
9 Oct 08
go to babypips.com it is a very gud site for beginers. thanks
@rocker21 (2717)
• India
2 Sep 08
THe forex trading is a market of a non-stop cash where currencies of nations are traded, Typically by the brokers. Curriencies from other countries are constantly and from all regions are bought and sold across local or global markets and traders investments increasing and decreasing values are based upon currency activities. [b] THe goal of the investor in forex trading would be profit from Foreign country currency activities. Its always done in currency pairs. for example the exchange rate of Eur or USD on September 1st 2004 was 1.0857. THis number is referred as a forex rate or just rate for short. If the investor has bought 1000 euros on that date, he would have to pay 1085.70 US dollars. one year later after then the rate or the "FOREX" rate was 1.2083, which means now that the value of EURO increased in relation to the US$. now, the investor could sell the 1000 euros to get 1208.30 $.In this way the investor would now have 122.60 USD more than what he started with before. While trading curriencies, you must trade only when you expect the currency that you will be buying is to increase in the value in the market to the relative value to the currency you are selling.If the value of the currency that you bought gets an increase than its surely that you are gonna get profit from it as mentioned above. [/b] this is all i know about forex trading and thats the basics i guess it helped you out Thanks!
@ramangill (1479)
• India
2 Sep 08
yaah thanx, i read this on a site. do you do forex trading??
@airl1527 (355)
• China
2 Sep 08
Sorry, i don't know it in detail.
@ramangill (1479)
• India
2 Sep 08
anything you know related to forex trading,you can contribute to the discussion. thanx
@darksorrow (4671)
• Bangladesh
2 Sep 08
I am not involved with forex so i don't know anything about it. But i heard who can do the business can grab some good cash from this business. You can try www.marketvia.com I heard they will let you practice forex without investing. Also They will pay you $1 for starting. You can try that. Hope i could help.