the previous course cashbackforexprofitcalculator mainly based on the basic theoretical knowledge of cashbackforexpipcalculator cashback forex profit calculator, today we start to learn the basics of foreign exchange practice people usually focus on the place to buy and sell foreign exchange called the foreign exchange market is known, the specific operation of foreign exchange trading itself is very simple, is a little click of the mouse thing, but to From the technical and technical aspects, the foreign exchange market is very similar to the stock market, if you have experience in investing in stocks, then you can quickly get started in foreign exchange investment foreign exchange trading is when you predict that the exchange rate will change in exchange for a forexcashbackprofitcalculator another currency, you buy the currency relative to the currency you sold appreciated you will be able to The following is an example to briefly explain the entire implementation process of some foreign exchange trading above involves a foreign exchange trading the most basic and most important concept: exchange rate in laymans terms, the exchange rate is a currency to another currency value ratio for example, the dollar / yen exchange rate refers to, 1 dollar is equal to how many units of yen, or 1 dollar can buy to how many units of yen, but also Can say to buy 1 dollar need to pay how much yen short and long: first to understand the two basic concepts: the base currency: is the foreign exchange quotation of the currency pair in front of a currency such as USD/JPY the currency pair, USD (U.S. dollars) is the base currency foreign exchange traders say buy and sell are for the base currency offer currency: is the foreign exchange quotation of the currency pair behind a currency For example, USD/JPY the currency pair, JPY (Japanese yen) is the base currency cashback forexs are expressed in the quote currency For example, USD/JPY = 108.32 means that 1 dollar is equal to 108.32 yen, where the base currency price of the dollar is expressed through the yen In addition, all foreign exchange quotes are in the form of currency pairs, such as EUR/USD, USD/JPY so foreign exchange trading is carried out at the same time, to EUR/USD for example, when you buy the base currency of the euro at the same time you also sell the offer currency of the dollar when you decide to conduct foreign exchange transactions, first you have to decide whether you want to buy (buy) or sell (sell) the base currency if you decide to buy in fact you are buying the base currency at the same time sell the offer currency If you think the base currency will appreciate, and when the exchange rate rises you will sell the base currency at a higher price in order to achieve a profit. If you decide to sell you are actually selling the base currency and buying the quoted currency at the same time, when you think the base currency will depreciate and when the exchange rate falls you will buy the base currency at a lower price to make a profit. What you need to remember is that shorting = selling bid/ask, spread All foreign exchange quotes have two price components: the bid price (bid) and the ask price (ask). The bid price refers to the banks willingness to buy the base currency at the current price level while selling the quoted currency; the ask price refers to the banks willingness to sell the base currency at the current price level while buying the quoted currency The bid price is usually always lower than the ask price, and the difference between the bid price and the ask price is usually called the spread (spread) The spread is the service fee charged by the bank or forex broker, which is their In order to make the problem specific we give an example to illustrate the following chart is intercepted from the foreign exchange trading flat on the real offer EUR/USD (EUR/USD) chart in the buy price is 1.34568, the sell price is 1.34588 to see how the foreign exchange economy for your foreign exchange transactions to provide convenient services if you want to sell the euro, you can use the mouse a click "sell” key, then you sell the euro at the exchange rate of 1.34568, at the same time you also bought the dollar If you want to buy the euro, you can use the mouse to click on the "buy” key, then you sell the euro at the exchange rate of 1.34588, at the same time you also sold the dollar More foreign exchange learning - foreign exchange basics, how to speculate in foreign exchange, please visit: foreign exchange basics learning section