CURRENCY TRADING
1. Purpose of trading
The purpose of trading on any market is to buy low and sell high. The foreign currency market
FOREX is no exception. The goods traded on this market are rates of currencies of different
countries. As any other goods the currencies have their prices.
To settle transactions between businesses located in different countries, governments,
speculative transactions and so forth, banks around the world execute currency trades
on Forex Market. Depending on various trade, economical and other parameters, interest
rates, central bank policies, time of the day, preferences and anticipations of the market
players, and many other causes, the rates, that is prices, of currencies stay in ceaseless
motion.
Your task as a trader is to determine the trend of the rate and buy an appreciating
currency or sell a depreciating one, and then take your profits through execution
of a reverse transaction.
And, at last, you will have a special trading account allowing you to buy and sell
desired currencies. Despite of having US dollars in your account, you may start your
trading from selling euro or japanese yens not concerning yourself with not having
bought them in advance.
