What is Forex Trading Spacilly For Beginners
So let me give you a simple example of Forex trading first.
I have these few currencies lying around, two different currencies.
So you have to travel from Pakistan to another country, assume you have to travel to America. So in the US, since the US dollar is the currency, you will definitely buy dollars first. So what you will do is that by giving Pakistani currency, you will buy dollars and the rate going today is ₹300 for one US dollar. That is, if you pay ₹300 PKR, you will get one USD. So what do you do? Buy ₹1000 in which you pay ₹300,000 and you get $1000. You spend a month there, come back and re-seal the same $1000 you have because you want Pakistani currency because there are PKRUs inside Pakistan. So what do you do now? When you come to return, you see that your rate has increased from 300 to 320 rupees. That is, ₹20 has become more behind a dollar. So now when you sell $1000 you have made a profit of ₹20 against one dollar. That means you got ₹20,000 more in $1000 than the 300 you bought earlier. 300,000 was purchased by you. Now what you have is ₹3,20,000. So you made a straight profit of ₹20,000.
Now if we talk about online trading, when you are doing forex trading online, you buy a currency in the same way. When it becomes expensive, you sell it. And the online trading that takes place is in the form of pairs, two currencies working together. Like it is dollar and pkr. So the dollar will be the first currency in it, if the USDPKR is a peer. So if USD comes first then we will call it base currency and PKR comes later as PKR then we will call it quote currency.
So when we feel that the dollar is going to be expensive, we will buy dollars. When we feel that PKR is going to be expensive, we will buy PKR. Now there are more pairs as well, Euro USD, GBP USD, AUD USD, Pound JPY and many other currencies are available. So we have to look at many things, do analysis and then we buy the currency that is going to be expensive. When it becomes expensive, then we sell, profit booking.
When can you trade in it now? Which time will suit you? In this you can work 24 hours a day. There is no time limit in that you have to work only from 9:00 to 5:00. You can work 24 hours in it, do it at night, do it during the day, do it in the afternoon. When you want, you can do it lying on the bed, you can do it while you sleep, you can do whatever you want. It does not have a time limit because the time zones around the world are different. When the Sydney session opens, the London session opens first before it closes, the New York session opens first before the London session closes, and the Asian session opens first before the New York session closes. The session opens, which keeps the market running for 24 hours. Saturday is a holiday, two days of official holidays you will also have a holiday, rest, enjoy and we call traders who are trading in forex trading…
Outstanding explanation u have given brother… thank you