EARNING WITH FOREX 😃

Some days ago I explained the basics in the FOREX market , the meaning, currency pairs etc if you havent read it you can visit the link below
[FOREX TRADING FOR BEGINNERS lesson1 by @spyrex]
Here.

I would love to use campus connect today to extend my lessons on this promising community. Like i said earlier, this is going to be a communicative class so anyone is free to add any knowledge on the comments below especially since im new at this too

source
So lets go
Today ill be talking about how we make money on forex

Last week when we talked about forex i explained what currency pairs were and now I’ll explain how we make money on forex .
You make money when the value or exchange rates of currencies rise or fall. Exchange rates fluctuate based on the strength and valuation of each currency.
When exchange prices flunctuate, it means the prices are going up or down. You might have come across charts in fx and wondered what it was and why it kept on going up and down. Good thats just the prices fluctuating

The concept of forex is the value of one currency against the other.
The EUR/USD is the most popular currency pair

BASE	QUOTE
EUR	USD

Lets say its current value is 1.0792. This is the quote pair evaluation, meaning every base or first pair in a currency pair will always have a value equal to 1. Example ( 1euro = 1dollar). So basically you are always exchanging one of the first pair with the quote or 2nd pair.
Eg

BASE	QUOTE
1 EUR	1.0792$(USD)

In simple terms this means that it will take 1.0792 dollars to make one euro. This also means that the value of EUR currency is higher than the value of dollars by 8cents.
Lets use another currency pair

BASE	QUOTE
1 USD	110.90 yen ( japanese currency)

As you can see the value of the USD is higher than the Japanese yen. So itll take 110.90 yen to get 1& (USD)

Exchange rates flunctuate depending on the strength and valuation of each of these currencies. So for example if we have the EUR/ USD pair and the EUR rises in value, then itll take more dollars to get one EUR and if the EUR falls in value then itll take less dollars to get one EUR. Either ways you make profit so long as you predict its rise and fall
Let me give an example
Using EUR/USD
(Ill be using the meta4 trading app)
You can see the current price of eur against usd

So the price of EUR/DOLLARS is 1.2091

Up in value	down in value
EUR	USD	youll need more than 1.2091 dollars to purchase 1 EUR

So therefore if the price of EUR/DOLLARS is 1.2091 and you place a buy order just then and the current exchange rate goes from 1.2091 to 1.2191. This means youve made a profit of about 1 cent.
When the value of EUR goes down and USD increases then youll have less than 1.2091 to purchase one EUR
Now this current price value is actually a profit .

Next lesson ill be teaching about PIPs and how they are counted
Stay tuned to campus connect to recieve more contents
Special thanks to @campusconnectng and @steemcurator01 for promoting this platform.

Cc.
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