jeudi 23 septembre 2010

Part 2 What is Forex ?

 The functioning and the basic vocabulary

When we invest(surround) on the market of Forex, we speculate on the evolution of a currency(slogan). The currencies(slogans) are always esteemed by pairs. Their price(prize) displays generally with an integer followed by 4 decimals:


Example: EUR / USD = 1, 2545 (1 euro is worth 1,2545 dollars)



Here, when we buy of the EUR / USD, we bet on the increase of the Euro with regard to the Dollar. In other words we plan that the European economy will have better health than the American economy.

If we wish to bet on the decline of the Euro, it is enough to sell of the EUR / USD. It is indeed possible to sell a currency(slogan) which we do not possess. The mechanism under jacent is rather complex, but in the practice it means simply that you click "sale" instead of "purchase", and that you win if the pair of currencies(slogans) falls.


The variations of the pairs of currencies(slogans) are generally expressed " pips " there. When the EUR / USD passes from 1,2545 to 1,2565, one

24 commentaires:

  1. Great blog, man!

    Hope you`ll check out mine as well.

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  2. hmmm that is really interesting gotta look into it

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  3. I've had a look into forex before now but couldn't make heads or tails of it.

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  4. Excellent explanation, that will be very useful :)

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  5. In here Forex is a cargo shipment company, but glad you put the literal meaning so I can shut my step mom up debating what Forex truly is haha.

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  6. I've dabbled in forex, but I can't find a website that I trust. Every one seems sketchy or cheap. Any suggestions?

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  7. looks like fun!

    check out my new blog, The Stepback Fadeaway!

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  8. nice! and yeah the euro has decreased a lot over the last 2 years or so.. crazy

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  9. is the euro worse or america getting better ?

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  10. Showing some love and support, keep up the good work =)

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  11. uhh, to difficult :(
    But I'm trying to learn!
    I'm supporting ya!

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  12. To Tesla Sands

    If you don't know of to choose a Broker, you can read some review in http://www.forexpeacearmy.com/

    For learn, babypips is perfect :)

    But i share some lesson is this blog !

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