Today I’m going to give you the Forex Fury break down, or crash course on trading. This is basically a brief explanation of how the market works, and how you can profit within it. I hope that you enjoy, and that you leave a comment with your thoughts.
Forex trading means that you can directly buy or sell foreign currencies. Because the Forex market does not require a physical exchange center like the stock market, it has become the biggest marketplace in the world. Another distinction between Forex trading and stock trading is that in the former, a transaction will always involve both selling and buying. That is why Forex transactions involve what are known as currency pairs. In the case of currency pairs, and Forex Fury, we focus on GBPUSD, but have recently added other pairs as well to increase the probability of our success.
There is a standard notation for the currency pair so that the first three characters will indicate the base currency and the last three characters will designate the quote currency. When you buy a currency pair, you are in effect buying the base currency and selling the quote currency. On the other hand, if you are selling a currency pair, you are selling the base currency and buying the quote currency. For traders that want to take advantage of sell trades, and frequent sell trades, Forex Steam provides tremendous automated sell trades. They have found a way to buy, and sell in an automated fashion in MT4, without sacrificing their strategy.
How to Make a Profit
The basic strategy for making a profit in Forex trading is quite simple. You buy the currency that you expect to increase in value compared to another currency and when it does you sell it for a profit. For example, if you expect the euro to strengthen over the U.S. dollar, you will buy the EURUSD currency pair and hold on to the euros until they increase in value. When this occurs, you can then sell your euros to make a profit.
Quotes for currency pairs will include two values, where one is the “ask” price and the other is the “bid” price. The “bid” price, which is also known as the “offer” price, is the value at which someone will sell the base currency. The “bid” price is what a buyer is willing to pay for the base currency. The spread is the difference between the bid price and the offer price. The spread can be a major issue with certain EA’s, but here at Forex Fury. we use a maxspread feature. This feature makes sure that if the spread goes above a certain point, no trade is placed.
There are two possible positions when you place an entry order and a corresponding exit order. The “long” position means that your entry order is buy a currency pair and your exit order is to sell it. The “short” position indicates that your entry order is to sell a currency pair and your corresponding exit order is to buy a currency pair.
At the time when you place an entry order, you will have to specify the price at which you desire to sell or buy a currency pair. You will also have to indicate the kind of order and the quantity to be bought or sold.
Kinds of Orders
When you specify a limit order, you are indicating that you will buy a currency pair below the present price, this is a main advantage of Forex Fury. This kind of order is appropriate if the price will slightly go down first before it reverses direction and goes up as you have anticipated. If the price indeed goes down to the level that you have specified in your limit order, you will have more profit than if your bought the currency pair at the present price. However, your limit order will not be executed if the price goes straight up. A market order indicates that you are buying at the present “ask” price or selling at the “bid” price. On the other hand, the stop order means that you will only buy or sell a currency pair when its price goes in the direction that you are expecting.