How To Trade Forex

For those who are still novices in the forex world, your first questions is How to doing forex trading? The answer is easy. Even with just a few minutes of exercise you would have basically understood. But once again we had an article written in previous. Saying playing the forex is easy, but its hard to win.

Basically trade forex is predicting a currency of pair will be rise/up or fall/down in value. With the confidence and analisys of the predictions we bring it into the open position/trade. In forex there are only 2 types of open positions. Ie
1. BUY / BUY / LONG: predict that pair value will rise.
2. SELL / SELL / SHORT: predict that pair value will fall.



In order to more clearly see the illustration below.

1. Handoko entered the position BUY EUR / USD at 1.3000, after a certain time
Handoko SELL (CLOSE) at 1.3064 then Handoko gain 64 pips / points (the smallest unit in forex)
If Handoko SELL (CLOSE) in 1250 then Handoko loss 50 pips

2. He entered the position SELL GBP / USD in 1500, after a certain time
Erik BUY (CLOSE) in the 1400 Erik gain 100 pips / points (the smallest unit in forex)
If Erik BUY (CLOSE) in the 1650 Erik loses 150 pips

Note, if you look in the forex application:
* Prices are used as BUY/LONG is the purchase price (ASK) and the prices used when you close is the selling price (BID).
* Prices are used as SELL/SHORT is the selling price (BID) and the prices used when you close is the purchase price (ASK).