How To Trade Forex - Making Money from the Markets
Making Money from Forex
To make money out of the Forex market a trader must make pips from either going long or short in the market.
Market moves up we BUY (Long)
Market moves down we SELL (Short)
A single pip is the forth decimal place of the exchange rate. For example EUR/USD - 1.3273
A trader must speculate on the movement of one currency pair against the other.
Bull (Long) and Bear (Short) Markets
When the market is going long (up) this is called a Bullish market and when the market is going short (down) this is called Bearish market.
Examples of Pips
Take £1 = 1.5229 USD
The last two digits are what is important which is referred to as 'Pips'
When trading the Yen there are only 2 Decimal places - example USD/JPY 97.91