Introduction to Forex Trading for Bangladeshi
Forex or FX is short for foreign exchange. So forex trading is currency trading. You simply exchange one nation’s currency for another in. The hope of making money when the exchange rates change. The rates are constantly changing due to market news, national events, changes in values on a country’s stock exchange, etc. At the most basic level, imagine you exchanged some US dollars for British pounds. You might sell $1,000 to buy £650. Within a short time the rate changes in your favor so you change them back again. Now with the new rate you get $,1010 for your £650. You just made $10 or 1% of your investment.
Currency traders do this kind of thing all of the time with the aim of increasing their funds through many small trades. They trade on margins so that they can control larger amounts with only a small investment In the above example you might only have to commit $10 in your brokerage account to make the purchase even though the amount is $1,000. The broker covers the rest on the assumption that the market is unlikely to go against you by more than 1% in a short time–and if it does, a stop loss will usually be in place to ensure that you cannot lose more than your $10.
You need a system that works, clear strategies and the ability to stick to your decisions, you must not be constantly switching systems or acting out of fear or greed Consistent application of a profitable system is the key to success.
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