If you intend to work in the forex market as a private trader, the object of your transactions will be exactly the dynamics of changes in exchange rates. Work in the Forex market is based on raising or lowering the rates of certain coins or precious metals. Therefore, the basis of your income is the accuracy of your forecast with respect to the fluctuation of these rates.
Schematically, a typical Forex transaction looks like this. You believe that at present the exchange rate of the dollar against the euro will increase. You give the order to open a transaction based on this forecast. If your forecast turned out to be correct, the transaction will give you some benefit (depending on how much the exchange rate has increased). You can arrange the benefit by giving an order to close the deal. If your forecast is incorrect, the transaction gives you a certain loss (depending on how much the exchange rate has gone down). The moment the agreement is opened depends on your choice. As changes occur constantly, your transactions can generate results in a very short time. This makes the Forex market almost unbelievably fast compared to other types of investments.
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