How you make money from forex trading?
When you do a forex trade, it means you buy a currency in exchange for another, hoping that the currency you bought will increase in value.
For example,
You bought 10,000 Euros at the EUR/ USD exchange rate of 1.80 In other words, you acquired 10000+ Euros at the expense of 18000 USD.
One hour later, you trade back your Euros back in to US dollars at the EUR/USD rate of 1.90
Which means you gave back 10000- Euros and gained back 19000 worth USD.
Your profit is ( 19000-18000= 1000) Thousand dollars.
Buy : EUR 10000*1.8 = 18000
Sell : EUR 10000*1.9 = 19000
Profit :1000
This is a screen shot of my trading account at the moment of writing this.
This $2843 profit was realized in the last 40 minutes and this all started with just $50 which I used to fund my account on 20th October, 2008.
