Buying and Selling for Dummies

Forex trading a global marketplace creating an opportunity for individuals by allowing them to break free from their current workforce and start working from home or anywhere in the world without losing touch with their current lifestyle or better yet improve it.

When it comes to business experienced investors would consider that the Forex market is considered the best and most profitable capital markets out there. It is a known fact that Forex trading is a sole domain of major banks, large financial institutions and also central banks.

Today, however, thanks to the internet the market is now opened to everyone and it has allowed Ausforex to help individuals who are eager to learn the best techniques in forex trading and with the intention of making substantial profits as the institutions mentioned above that annually and consistently make pretty high profits from trading in the Foreign Exchange market.

Let’s talk about the major players, the 5 major currencies in the forex market are US Dollar, Japanese Yen, British Pound, Euro and the Swiss Franc. Their greatly popular among the world’s commerce as their trading activities account for an estimated over 70% of North American trading alone.

 Then again, we can’t ignore other currencies like Canadian, Australian or New Zealand Dollars as they account for 4%-7% of the total market volume. Making the 5 majors and minor currencies forming the backbone of the Fore market.

If you’re just starting to trade learn what “buying” and “selling” means. During trading “Buying” in Forex refers to the acquisition of a particular currency pair to open a trade and “Selling short” refers to the selling of a particular currency to open a trade, i.e., just the opposite. When you Buy, you are expecting the price of the currency pair to increase with time, i.e., you buy cheap to sell high; which is easy to understand. In the case of Selling short, it looks a bit more complicated.

Here the way to make money is to initially sell a currency pair that you think will lose value in a given period of time and then, once it happened, you will buy it back at the new price but now you can sell it at the previous greater price the currency had when you opened the trade, so you earn the difference in prices. It may seem kind of tricky when you are starting, but once you are in front of your trading station it will look much simpler.

Still confuse and want to know more, contact us now and we will show you how!