How to make money on the Forex market

How do traders make money on the Forex market? How to open and close transactions?

How to make money on the Forex market A trader works at his computer with a special program MetaTrader which shows him the schedule of rates or other financial instrument. For example a graph of the price of gold or value of one currency to another (the so-called currency pairs). Here you can to see a chart of the currency pair EURUSD (shows how much the price should be USD, to buy 1 EUR). Trader analyzes the changes in the price schedule, and concludes that asset (financial instrument) at a certain moment may grow in value and buys it. When an asset rises, he sells it, getting a good profit. A trader can vary its profits to various opening transaction volume. Volume is the lot. Minimum lot size for 0.01, then in increments of 0.1, you can choose any volume, such as 1 lot or 100 lots.

A little later, you can see the dependence of the value of puntka (unit of mutations both Prices on the chart) on the size of the lot and received your return.

Consider a specific example :

How to make money on the Forex market

Now let us consider in detail how to open the transaction. Consider the example of a currency pair EURUSD.
Trader evaluates the current market situation and decide to sell EURUSD (See the figure) on the level of 1.1380 (1). Also, the trader has analyzed and determined the level on which to close the position. At the level of 1.0530 (2) it closes first deal.

Thus, (1.1380-1.0530=0.0850), the trader has received 850 points . The cost of the item for a currency pair EURUSD, with the volume of transactions in one lot is $10, then there is profit in the first transaction was $8500.

Immediately a trader decides to buy from the 1.0530 (3) level, and closes the position at 1.1230 (4), that is (1.1230-1.0530=0.0700) 700 pips.

The second time he opened a large transaction volumes of 3 lots .If volume 3 lots point value for the currency pair EURUSD is $30, then there is profit in the second transaction was $21000.

There is nothing complicated. The main thing to be careful and not make hasty action!

How to make money on the Forex market