HOW YOU CAN TRADE(BUY AND SELL) AT THE FOREX MARKET

1. Trading Rising Prices: 

You believe that the euro will strengthen against the dollar, and decided to buy euro now in EUR/USD to sell it back later at a higher price.

If EUR/USD is quoted at Bid price of 0,9875 and Ask price of 0.9878, which means that you can sell 1 euro for 0.9875 USD or buy 1 euro for 0.9878 USD.

In this example, you buy euro 100,000, at the quote price of 0.9878(Ask price) per euro. Later, the market turns in favour of the euro and the EUR/USD is now quoted at Bid price of 0.9894 and Ask price of 0.9896.

Now you sell your euro at Bid price of 0.9894. The profit is calculated as follows:

Sell price - buy price × size of the trade. That is,

0.9894 - 0.9878 × 100,000 = USD 140 (profit).

(Note that the profit or loss is always expressed in the secondary currency).

2. Trading Falling Prices: 

If on the other hand, you believe that the euro will weaken against the dollar, and decided to sell euro in EUR/USD to buy it back later at a lower price.

If EUR/USD is quoted at a Bid price of 0.9875 and Ask price of 0.9880 and you decided to sell euro 100,000 at a Bid price of 0.9875.

Later, the euro weakens against the dollar and the EUR/USD is now quoted at Bid price of 0.9744 and Ask price of 0.9749.

You sell EUR at Bid price of 0.9875 and later buy it back at an Ask price of 0.9749. Your profit is then:

Sell price - buy price × size of your trade. That is,

0.9875 - 0.9749 × 100,000 = USD 1260 (profit).

Hope these brief explanation was helpful.

Visit the below links to open your forex account and start trading immediately: www.agea.com/gid=53541 or  www.instaforex.com/en/index.php?x=LGYM

Good luck!