Forex strategy trading is an amazingly lucrative investment to be involved in. It is the exchange of foreign commodities worldwide sold for a profit depending on what the market is investing with and the size of the lot.
Trading the Forex is not like the stock market where they are ruled by the SEC. In Forex most of the trading is done through online trading platforms and a network of banking brokers.
A great portion of the wealth that is exchanges comes from only five percent of the market banks and large corporations.
The other 95% comes from smaller participants who may have a few thousand dollars in their account to play with.
Not surprisingly there is a lot of technical jargon involved like, Fibonacci retracement, which tells you where the level at which a market trend will break, and fundamental analysis which simply means information you are fed over the news.
These different types of terms intimidate a large amount of newbie Forex traders, but trust me they are easy to learn and there is no reason why you can not pick them all up.
The main principle is to buy one currency at an exchange rate that will rise up enough in value to be able to buy more of a currency which is worth less now because of the raised value all centralized around the US dollar.
The 0.0001 example I gave above is spot on for most of the major markets, but for the smaller ones sometimes the price might be measured differently.
I hope this article has been helpful in enabling you to comprehend just how Forex strategy trading works.
Best regards,
Jay Molina
Senior foreign exchange trader & mentor
Great suggestions. Forex trading is a very interesting and profitable option. This article helped me in a great way to know how Forex strategy trading actually works. Thanks for posting.
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