Trading Forex is exciting business. The market is always on the move, and every tiny shift in currency rates can mean profits and losses of hundreds and even thousands of dollars!
Let’s demonstrate how that can happen. In general, the eight most traded currencies on the Forex market are:
USD US Dollar EUR EuropeanEuro GBP British Pound JPY Japanese Yen CHF Swiss Franc CAD Canadian Dollar AUD Australian Dollar NZD New Zealand Dollar
Forex trading is always done in pairs, since any trade involves the simultaneous buying of a currency and selling of another currency. While Alite Capital Markets offers over 50 currency pairs, most trading volume revolves around 14 main currency pairs. These pairs are:
Sell the EUR/USD at the Bid rate of 1.2917 – or- Buy the pair at the Ask rate of 1.2918
OK, but where’s the opportunity for profit?
The currency pair rates are volatile and constantly changing.
One way to profit is by buying a pair, then selling it back at a higher rate to close the position. The second way is by selling the pair, then buying it back at a lower rate to close the position.
As your positions become profitable, you will see your account Equity increase in real-time in the MetaTrader software. When you close a profitable position, the gains will be “realized” and added to your account Balance as well.