September 29th, 2012 
admin In the forex market, you deal the business of exchanging money by buying or selling of currencies. The method of placing trade in the foreign exchange market is easy for the people who have some experience of working of stock market. If they have experience to work in stock market they will develop their business in forex quickly.
Learn How You Earn Money in Forex
The function of the forex trading is buy one currency and when the price will change then sell this currency in exchange of other currency. The working of the system is like you buy the currency and after their value is increased then sell them to get profit.
Example:
| Trader’s Action | EUR | USD |
| You buy 10,000 Euro at the EUR/USD exchange rate of 1.1600 | +10,000 | -11,600* |
| After two weeks, you sell your 10,000 Euros in exchange of U.S. dollar at the exchange rate of 1.2700 | -10,000 | +12,700** |
| You earn a profit of $1100 | 0 | +1100 |
*EUR 10,000 x 1.16 = US $11,600
** EUR 10,000 x 1.27 = US $12,700
Simply you buy the specific currency which is varied from other currency and after some time you sell that currency and buy another currency which is exchange rate of that currency.
Just Like, the USD/GBP exchange rate shows that how many U.S. dollars can purchase one British Pound, or how many British Pounds you will require to purchase one U.S. dollar.
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