Forex Trading is same as that of equity trading. In equity trading rate of share matters while in forex trading exchange rate matters. You can buy or sell currency pair as per your expectation of movement in currencies. Please refer to the example given below for better understanding.
Suppose you want to take advantage of growing price of a dollar. The dollar is trading at Rs 64, you feel that price is going to appreciate and expected to reach at Rs 67 in few months you can enter into a long position by buying USDINR contract on the exchange. If the price goes to Rs 67, you get the profit of Rs.3 per dollar. So in the single contract of 1000$ you can earn Rs.3000.
Forex Trading or Currency Trading is Risky and not for everyone
Trading in forex carries a high level of risk and it may not suits everyone. Before deciding to do forex you should consider your investment objectives, risk carrying capacity and level of experience.
Do you deal in forex trading if yes; Do share your experience!
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