Beginner Guide to Investing Forex Trading Currency Trading

If a trade goes wrong using something like a a stoploss if you’re considering spread betting for example and finally unlike say trading shares it’s known as a zero-sum game what I mean by that is if I go out and buy UK food retailers I could buy Tesco with rather than Sainsbury’s but actually both of those could rise together i’ll still make some money they could both fall together to in the currency world it’s a bit different if I decide to bet on sterling I’m betting on sterling against something else say the US dollar now the point is one of those will rise or one of them will fall so in that sense it’s zero-sum in other words jadwal tv

The currencies you’ve always got to decide what you’re betting against as well as what you’re betting for I don’t need to do that shares I just say I’m buying Tesco and hoping Tesco goes up but in the currency markets you’re always trading pairs of currencies so as one rises and other Falls and so on now it is possible for all currencies in the world to rise or fall again say a commodity like gold well that’s not the same point within the currency world everything’s zero-sum so you’re always trading a pair you’re not just picking off one at a time and that’s something to bear in mind when you trade currencies if you’re bullish about sterling you are presumably bearish about something else

The euro for example okay so let’s take a look at how a typical foreign exchange quote works it’s a little bit fiddly it’s not quite as straightforward as say pesco shares but it’s not too bad so first of all what are these currency pairs I’m talking about well there are half a dozen or so major currencies around the world Sterling’s one of them the euro the yen the Swiss franc the US dollar the Australian dollar and the Canadian dollar these are all major currencies and because currency traders like to keep things quick they’re all shortened so when you’re spread betting for example you’ll often see sterling described as GBP and you’ll see US dollars described as USD so all currencies have these little three-letter acronyms euro not surprisingly or you ye you are