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Currency Trading Basics – Buying and Selling Currencies

Buying and selling currency is the main role of a trader in a Forex market. Generally, this is how a Forex environment have, traders buying and selling currency. When a trade is made in Forex, it has two sides – someone is buying one currency in the pair, while another individual is selling the other. Traders look to make a profit by betting that a currency’s value will either appreciate or depreciate against another currency. For example, assume that you purchase US$10,000 by selling 8,000 euros. In this case, you are betting that the value of the dollar will increase against the euro. If your bet is correct and the value of the dollar increases, you will make a profit. In order to collect this profit, you will have to close your position. To do this, you must sell the US$10,000, in which case you will receive more than 8,000 euros in return.

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In order to make a very good and profitable trades, a trader must know when a currency will rise and fall. It’s basically done by predictions. This is where risk takes part. The video presented above gives a brief and concise idea on how a trader should trade, specifically, when to buy or when to sell. The video provides a step by step and clear example of buying and selling. Especially designed for beginners, it aims to help those new in the Forex market to make them a better and a competitive traders.

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