Forex trading

While thousands of people trade in Foreign exchange every day, some still wonder - what is Foreign exchange trading?

In short, it is purchasing and selling currencies - or funds, if it sounds better. Imagine that you live in Great Britain. Your friends tells you he is going to the US next week for holidays and therefore he requires some American funds. Obviously, in the US no shop would accept British pounds.

Fortunately, you have some dollars left from your last business trip to New York, so you take your wallet, get twenty banknotes of 100 USD and sell them to your mate. Obviously, he pays you back with British pounds - because you live in London, you are not interested in any other funds.

Well, you have made a foreign exchange operation! Now, imagine that in lieu of taking British pounds from your mate, you ask him to give you back the same amount he received - 2000 USD, to be correct. At this moment, the exchange rate was 1.4282, let's assume. He spends two joyful weeks in the US, travelling around the states, tasting some scrumptious stakes with Californian wine and even singing local anthem. Then your mate comes back to London and he's to give you back 2000 USD. Fortunately, the exchange rate of US dollar versus British pound has increased dramatically due to some latest news from the US - it is 1.4021 now, meaning US dollar is now more costly in the United Kingdom! So, two times you get 2000 USD back, you go to a funds exchange window at your favourite bank and alter dollars back to pounds. And then - surprize, you made a profit because of the funds rate fluctuations!

Nowadays, there's more sophisticated and high-tech ways to do foreign exchange trading than selling currencies to your friends and fellows. You can open an account with a foreign exchange broker and start trading online - from any place in the world, with tens or hundreds of different currencies! And thanks to leverage - automatic "credit" process, your profits can increase ten times or even one hundred times!

Now, you actually did some primitive type of foreign exchange trading!

So, why waste time, why not start live foreign exchange trading right now! Forex4you will be glad to assist you with any queries that may arise throughout the method!