Back to converter
Sep 2020

Forex Trading - How Can You Make Money Day Trading Forex?

The objective of forex trading essentially is to trade one currency for the other in the hope that it will move in the predicted direction. Put differently, the currency you purchased will grow in value relative to the one you are selling. For instance: traders action EURUSD If this action continues, then within a short time (a week or less), the EURUSD is worth more than the U.S. dollar. This is known as forex leverage. The higher the leverage, the greater the potential gain on any one trade.

To participate in the market, first you need to open a trading account with a broker. Next, choose the currency pairs you are interested in trading (e.g., EURUSD and the corresponding GBPUSD). Once you have selected the currencies, place your buy order by selecting the "buy" or "sell" option on the toolbar. Your order will be executed when the market becomes volatile.

As mentioned earlier, the primary goal is for the foreign currency pair to gain in value. So how can this activity be possible if trading on the Forex market is done using the U.S. dollar? For a simple answer, foreign currency trading takes place when the euro/dollar pair moves in a favourable direction. In other words, when traders expect that the EURUSD will rise in value against the U.S. dollar, they may enter the market to purchase the EURUSD. And when the EURUSD declines against the U.S. dollar, traders may sell the EURUSD to realize profits.