What is forex trading_ fx trade example_ live fx

What is forex trading_fx trade

Forex is short form of foreign exchange, in the modern world all words having its own unique short form same like exchanging one currency to other currency with local forex broker or online exchange broker  that transactions is called forex, technology further it shortened in to FX so foreign exchange history  is like this FOREIGN EXCHANGE- FOREX- FX.

                     Let Start with example a person living in united states and planning to go for Europe tour, he prepared his all tour plan expect money. Previously I told this person living in united states obviously he hold US dollars, holding USD currency he cannot spend this cash in Europe until it converted into EURO . So he reach to his nearby foreign exchange broker  office and he say to that broker I want $5000 equal lent euro currency that means he is selling his 5000 USD to that broker and buying EURO for his euro trip expenses.  

                 One-more example a mobile trading company from Europe wants 1000 pieces of latest I phone from Apple, Inc USA. This Europe company ordering to Apple and  Apple says they accepts only USD currency, then this trading company Buying USD from fx broker and selling Euro , now the trader got USD and transferring money in $ to Apple and finish the deal.

Best online forex broker 

                           First find out the best forex broker from internet and open an fx demo account , normally top online forex brokers provides web based, mt4 and mobile based trading platform for exchange trading.

FOREX LONG TRADE EXAMPLE 

                             Let start a practical example for online forex trading. In the below fx trading picture you can find EURUSD 1.1200- SELLING rate and 1.1205- BUYING rates. As a trader by collecting news and come to know In upcoming days any positive news is going to come from Europe countries and it will boost the europe economic that means euro currency price will increase from 1.1205 and above so trader plane to buy EURUSD, if the above  news becomes success and the currency price moved from 1.1205 to 1.1250 then the   fx traders will get gain (1.1250- 1.1205) 45 pip. 

Forex trading terminal_ fx trade_ forex trade

FOREX SHORT TRADE EXAMPLE

           The same trader got some negative news about EUROPE and he sell the euro for 1.1200 and the news become true then the euro price goes down to 1.1150 this time again the trade gain from short selling with 50 pip profit. 

By the above Forex Long and short trading method forex traders can profit by both way if he planned well. 
Tips: 

Any currency market always buying price will be greater than the selling price this buying price and selling price difference is called FOREX SPREED its varies from broker to broker.