Forex Basic Knowledge

The source of the Traders Profits in Forex Trading

For the novice Trader, need to learn and know the basic of the forex world. That’s from smallest things to great things is very important. Especially the problem of profits and losses. From which the source of the Traders Profits in Forex Trading and also where ongoing fund losses in forex trading. Everything you need to know and learn to establish the steps towards success in the forex world. Advantages and disadvantages in the world of forex trading it is the usual thing. Because forex trading including online business which can equate with a trade or sell online.

In the business of Forex Trading, traders must instill strong business schools. Where in the business it is sure there are advantages and disadvantages. There can be no trader or traders who continue to profit and loss over time. if talks about continuous losses, it depends on your business as market participants forex trading. Well if it can be the next good thing, from which the source of the Traders Profits in Forex Trading?. And if our funding where it will lose.

The source of the Traders Profits in Forex Trading

Talk about the source of the fund’s profits in Forex Trading it is almost the same with the business of buying and selling in General. If the buyer profits, the seller certainly will lose out, vice versa. If the selling profit, which will be buying Loss. Can be demonstrated as follows:

The source of the Traders Profits in Forex Trading

Example:

You are buying 1-kilograms of gold, you think if the gold price will go up so you dare to buy gold at that time with a price of $100. Over time, the price of gold began to rise. and you sell it at a price of $1,500. The buyer handed the money to you as much as $1,500. From a simple count, you have a profit of $500.The source of the profits derived from the difference between the buying price and the selling price. So it can be said that it was buying a loss if the price he bought the slumps after the fall. But it could also be the buyer a profit if the price goes up again.

From the example above, it can be said the source of profit in Forex Trading it is derived from the difference between the selling price and the purchase price. If behind and passed on the story above, it could also be demonstrated in the following:

example:

You sell gold at that time for $1,500 to buyers. then the buyers bought $1,500 because think prices will rise. But what happens instead, prices go down. and in the end, the buyer sells its gold at $900. so the buyer above already lost $600.

So be told you it was a profit because selling gold before the price dropped. and the loss that is the buyer. It is a simple example. If they should with forex course is definitely different language again. In the world of forex is not a unit of Seeds or Fruit Unit again that you are selling or buying. The unit Forex trading is Lots. so it’s almost the same as 1 Ton rice. rose 100 points only 1-kilograms. you’re lucky a lot if you buy before the price goes up.

In the world of Forex Trading, it was, in fact, is the buying and selling of the contract goods. Because the goods are not we keep directly. so you will profit if bought in advance of the contract the goods before the price goes up and pulled off his contract after the price above.

The Conclusion:

From the explanation and examples of simple transactions above, can conclude if the source of the Traders Profits in Forex Trading that is derived from the difference between the selling price and the purchase price. But the source of the money that is coming from a Trader’s losses. So if you’re lucky it’s money you get comes from traders who lose out. And if you Lose it you will take Money traders who profit. But once again the world’s Forex trading is not gambling. It’s Purely business. Because in business, profit and loss statement it’s been okay.

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