How to make money on the Forex market?

No comments

PortalKota – How to make money on the Forex market?. In order to make money on the Forex market, you have to buy low and sell high, quite simple.

Lets have a look at the example: How much money can you theoretically make by trading currencies? Lets assume that you have 1,000 US dollars on your trading account. The current exchange rate of Euro versus the US dollar is 1.25.

In other words, for 1 euro you get one dollar and 25 cents. You forecast that during the day Euro would rise versus the US dollar.

How to make money on the Forex market?

Based on this forecast you buy 800 Euros for your 1,000 dollars. Your forecast is correct! Euro rises from 1.25 to 1.26 dollars.

Being in profit you decide to close the trade and exchange 800 Euros back to 1,008 dollars. In effect, your profit from this trade is 8 dollars.
Not that much, right?

You raise a fair question: Would it be possible to increase profits In order to maximize your profit potential you can use leverage. Leverage is a loan Tickmill provides you to trade Forex.

The size of the loan can differ but Tickmill provides you with up to 500 times more funds than your initial capital, which also increases your profit potential 500 times. Great, right?, Still, please remember.