Best Forex Brokers for Online Currency Trading

Study Materials

Cashing in on Price Movements

Trading Forex is exciting business. The market is always on the move, and every tiny shift in currency rates can mean profits and losses of hundreds and even thousands of dollars!

Let’s demonstrate how that can happen. In general, the eight most traded currencies on the Forex market are:

USD
US Dollar
EUR
EuropeanEuro
GBP
British Pound
JPY
Japanese Yen
CHF
Swiss Franc
CAD
Canadian Dollar
AUD
Australian Dollar
NZD
New Zealand Dollar

Forex trading is always done in pairs, since any trade involves the simultaneous buying of a currency and selling of another currency. While Perfect Capital Markets offers over 50 currency pairs, most trading volume revolves around 14 main currency pairs. These pairs are:

EUR/USD
EUR/JPY
GBP/USD
EUR/GBP
USD/JPY
EUR/CHF
USD/CHF
GBP/JPY
USD/CAD
GBP/CHF
AUD/USD
CHF/JPY
NZD/USD
EUR/CAD

When buying or selling a currency pair, each pair has its own Bid/Ask rate, for example:

This means you could either:

Sell the EUR/USD at the Bid rate of 1.2917 - or- Buy the pair at the Ask rate of 1.2918

OK, but where’s the opportunity for profit?

The currency pair rates are volatile and constantly changing.

One way to profit is by buying a pair, then selling it back at a higher rate to close the position. The second way is by selling the pair, then buying it back at a lower rate to close the position.

As your positions become profitable, you will see your account Equity increase in real-time in the MetaTrader software. When you close a profitable position, the gains will be “realized” and added to your account Balance as well.