More to "How it's done?"
For example; if the price of the EUR/USD is 1.08, this means that the value of 1 Euro is equal to 1.08 USD (this is also known as the exchange rate, which you may find displayed on the evening news, or on the electronic boards at your local bank). If the rate should rise to 1.10, this means that 1 Euro is now worth 1.10 USD, in other words, if you had bought EUR/USD when the price was 1.08, then you have now made a profit of 0.02 EUR for every Euro you had purchased. The supply and demand for the currency pair that you are trading is what ultimately determines it’s pricing in the market. Traders will use 'Technical Analysis' (I.e. using charts and indicators that are based on mathematical algorithms) to determine the trends in the currency pairs. They also keep a sharp eye on economic data released by a country's central banking system, such as; CPI, employment and unemployment rates and interest rate decisions, to determine the economic outlook of the countries whose currency pairs they are considering trading, this is known as 'Fundamental Analysis'. These factors will then give them a forward outlook on how the market will behave in the given currency pair and help them decide which direction to take in the trade.
Why you should trade
BetaFX245 is the broker of choice to give you instant access through our straight to market trading platform, so that you can take advantage of the massive opportunities available to you as a Forex Trader. Whether you want to trade part-time or full-time, BetaFX245 has the support and systems you need to trade effectively and efficiently and maximise the profitability of your trading strategy.
In Forex Trading, there is a difference between the buy and sell rates of a specific currency pair, i.e: you may be using EUR/USD to buy at 1.0718 and sell at 1.0702, the difference between these rates is known as the 'spread'. At BetaFX245, we offer the tightest spreads to give you better value on your trading and assist you in making greater profits. Our commissions on trades are also amongst the most competitive in the marketplace today. Give us a try and see you trading account balance grow.