What is Forex?
The Forex market is like any other market where the currency is traded instead of food and commodities.

What is a Forex Broker?
Anyone can trade Forex, but only through intermediaries called brokers. Essentially, a broker is the Forex ‘hand’ that provides access to the market.

What is a currency pair? There are
currency pairs traded on the market. For example, Euro and US Dollar (EUR/USD). Want to buy euros for dollars? Open the EUR/USD trade and press “Buy”. buy dollars with euros? Select “Sell” as well. It’s very simple. Remember that your actions are always relative to the first currency of the pair.

How to make money with forex?
people buy currency pairs at a low price and sell them at a high price, their income is the difference between the buy price and the selling price. Brokers receive a small commission from trading called spreads.

Example:
You have $100 in your trading account and you want to trade EUR/USD. The exchange rate is 1.25. So for 1 Euro, you get 1.25 USD. An exchange rate is like a price tag in a grocery store. The only difference is that forex price tags are constantly changing.

Next, make a prediction. For example, I expect the euro to appreciate against the US dollar.

Now buy 80 euros for $100 and wait for the exchange rate to change.

Let’s say you went from 1.25 to 1.35. You can close the deal at this point, as this is a beneficial situation for you. Now you can exchange €80 for $108 and get a profit of $8.

If you don’t think it’s worth the money, we have good news for you. Leverage is the money you borrow from your broker to double your deposit.

For example, if a trade similar to the previous example using the leverage of 1:
3000 on FBS, only he could get $2400 in one trade. This means you can invest $100 and trade for $300,000. Not bad, right?

Remember:
Higher Profit Means Higher Risk, So Risk Management Is An Important Part Of Trading!

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