Beginner Guide to Investing Forex Trading Currency Trading 2019

The euro for example okay so let’s take a look at how a typical foreign exchange quote works it’s a little bit fiddly it’s not quite as straightforward as say pesco shares but it’s not too bad so first of all what are these currency pairs I’m talking about well there are half a dozen or so major currencies around the world Sterling’s one of them the euro the yen the Swiss franc the US dollar the Australian dollar and the Canadian dollar these are all major currencies and because currency traders like to keep things quick they’re all shortened so when you’re spread betting for example you’ll often see sterling described as GBP and you’ll see US dollars described as USD so all currencies have these little three-letter acronyms euro not surprisingly or you ye you are jadwal tv

And so on so make sure that you’re aware of what the major currency pairs look like shorten because otherwise you’ll look at that and thing with no idea what that means what this means is I’m thinking about betting on sterling against the US dollar then you get a rate now the currency on the left is the one there is one off so what I mean by that is a typical rate will come with two prices just like when you buy your holiday money you walk into the bank and you say I’d like some dollars to go on holiday and they say fine we’ll sell you dollars at this rate and then if you try and go back two weeks later and sell some of the dollars you haven’t used on holiday you find they apply another rate and not surprisingly it works out in their favor not yours currency markets not surprisingly use

The same principle across the board so when you’re buying and selling currencies be aware that the rate will be split into two there’ll be a bid rate and there’ll be an offer rate so what this comes down to is you need to think am i trying to basically buy the currency in question or sell it or am i betting on sterling appreciating or depreciating so let’s put a rate in so for example maybe we’ve got a bid rate of one five five eight six an offer rate of one five five eight nine now on a screen it won’t necessarily say that this is a dollar rate it may just appear like that it may even appear like that but everybody knows that this is a currency quote once you know the or dealing with this pair you know that these are dollar amounts and so let’s just turn that into

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