HOW DO YOU MAKE MONEY ON THE FOREX MARKET? | ANIMATED

HOW DO YOU MAKE MONEY ON THE FOREX MARKET? | ANIMATED


Have you ever heard of the term Forex Trading
and wondered what it meant? At the end of this video, you should properly
understand what it means to trade Forex. In simple terms, Forex or FX is the abbreviation
for Foreign Exchange. FOREX is a global market that allows the exchange
of one currency for another. Therefore, Forex-Trading is the transaction
in which one currency is traded for another. A transaction can be made by either BUYING
OR SELLING. For example, you travel to the United States
for vacation, during your stay you would have to use the United States Dollar to make purchases. And so, you would have to go to the bank or
Cambio to exchange your Eastern Caribbean Dollars for U.S Dollars. This exchange is the transaction of BUYING. Let�s say the bank�s Exchange Rate of
Eastern Caribbean Dollar to the United States Dollar is 0.40. That means for every 1 Eastern Caribbean Dollars
you will get 0.40 United States Dollar. The budding question is how exactly can you
profit from trading currencies? Well, The Exchange rates constantly fluctuates
due to Economic reasons and this fluctuation is what makes forex trading profitable. For example, while you were on vacation in
the United States, you traded 3000 Eastern Caribbean Dollars for 1200United States Dollar
but did not spend any. Upon returning home to the Caribbean, the
exchange rate of Eastern Caribbean Dollars to United States Dollar changed from 0.40
to 0.30. So that means when you go to the bank or cambio
to exchange your 1200 United States Dollar for Eastern Caribbean Dollars, you�d be
getting back 4000 Eastern Caribbean Dollars. That�s 1000 Eastern Caribbean Dollars profit! This exchange is the transaction of SELLING. This is essentially forex trading! Did you know that these transactions can be
made online? Instead of visiting different countries or
going to Banks or Cambios to trade foreign currencies, you can easily trade forex at
the tip of your fingertips! This is possible with online brokers. Continue with Caribbean Forex Academy�s
Educational Program for more animated video lessons to expand your knowledge of the forex
market and start trading today!

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