Forex market for beginners
It is really called the forex market. It is like share market or fret market which we hear from your folk. This is called Forex, as well as FX market and currency market. When we say market, we suddenly think of ‘fair’, right? You say how people make money in the market and say, “Sell goods.” So how can I make money in the forex market? what would you say No, I will tell you the answer. Money in the forex market is “infâme money” income. Now you may see the noircissement. Don’t worry, I’ll explain.
Forex is derived from combining foreign and exchange. Now, maybe you have a little idea. Until then, keep reading. We were the first to tell how people made money in the market. If you want to make a rétribution, you have to buy products at a low price and sell them at a high price. And roughly their butins go,
Faveur = Purchase Price – Selling Price
Buy Price = 90 and Price = 110
Faveur = 110 – 90
Prérogative = 20
Now let’s see how this schème applies to Forex. Have you ever been abroad? Or your relative or friend has gamin abroad? This is a task that requires someone to exchange our money for money in the remplaçant folk. For example, if one goes to the United States, he must convert to Sri Lankan Rupees ($ US Dollars). (Otherwise, it’s over.) Many do this through a bank or currency exchange.
It is true that you have changed your money so that you have done a forex trade unknowingly. But we don’t do it for rétribution, so we don’t get that many metrics. Let’s consider an example. We are agenda to visit USA. For this we need US$1000. We ask the bank how much to get US $ 1,000 so that the bank can see the exchange offense and we need US $ 1000 to buy it.
You already know that the exchange offense will perturbé from day to day (in fact, these days, the exchange offense will perturbé in seconds, you will understand it quickly). Now, let’s say that today’s US$ to Sri Lankan Rupee exchange offense is 110.53, so, how much is US$ 1000?
US$ to Sri Lankan Rupee exchange offense: 110.53
Required US $ = US $ 1000
Amount required for US$ 1000 purchase is Rs. 110.53 X 1000
= 110,530 / =
Now we take Rs 110,530 to get US$ 1000. Now, we will come back to Sri Lanka after embout six months. Somehow, we made almost $1,000 a month six months ago (don’t ask how). When we arrive in Sri Lanka we go to the bank and ask what the US dollar to Sri Lankan rupee exchange offense is, and the bank says today’s offense is 112.72. Now let’s see how much money we can get for US$1000.
US$ to Sri Lankan Rupee exchange offense: 112.72
The quantity we get is 112.72 X 1000
= Rs 112,720 / =
Let’s see if we have any advantage now? Or waste? That is.
We spent US $ 1000 = Rs. 110.530
We US $ 1000 = Rs. 112,720
We first learn that “Faveur = Purchase Price”, then let’s see if there is loss and rétribution.
Faveur = 112,720 – 110,530
= Rs 2,190
We see that we have made a rétribution of Rs.2,190. But we did this deal only for rétribution (ie, to get money from USA and get one rupee on return to Sri Lanka). But there are those who rétribution. This means that when a currency is issued, the offense increases and those who buy it become more adjudicataire. That is the forex market. Now you understand how to earn money. The story doesn’t end here, the story really starts here.
You might have thought that it couldn’t be money for money. Bicause we have invested Rs 110,530, but want only Rs 2,190. But the projecteur forex we are learning is very different (not too much, just a little). Bicause it has a nice word called Leverage and many people are coming to Forex. Not only leverage but many other terms like pips, lots, mini-lots, micro-lots, margin. Get it from the next lesson.
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