Posts Tagged ‘futures trading money management’

How do you make money trading money?

Almost investors make their trade by the exchange of any currency with their base currency. The investors can be a person, organization or any country which can do business with forex by sparing and investing their capital and after involving in the business with the forex they get their shares. It will be an imagination to buy and sell the currency while thinking that it will increase or decrease in value.

How do you make money trading money

How do you make money trading money

Keep remember while trading with forex that there are two currencies in every trading. You will have to sell one currency which is called base currency and present in your hands as a hard cash for which you have to exchange other currency which is called quote currency, by buying it. For example if you have dollars and you want to trade in Euro then you should buy Euro in exchange of one dollar like Euro 1.2243 for one dollar. The trader can do business while trading when the rate of dollar becomes high and the rate of Euro becomes low. But when the rate of dollars low and the rate of Euro become high then he should sell the Euro and gain profit. While doing business with forex it should keep in your mind that the base currency has the price of one unit in comparison with the quote currency.

To understand the position of currency exchange, the base currency should be considered at a short position because you are selling the base currency and buy the quote currency. There you should stay for some time to look at the currency and after gaining good position by the quite currency then you sell the quote currency and buy the base currency so that you can get profit.