An exchange rate is the value at which one country's currency can be exchanged for another. When traders in gauge with the effects market from a speculative standpoint, a view or base is taken either in the form of a long position or a short position.should the euro advance against its us counterpart, increasing in value. Those long the market will not a profit, while those short will be at a loss. Are declined to 1.0 79, on the other hand, translates to a loss for traders long the currency pair and again for those short. An important point to remember when executing A trade is in foreign exchange market is: 1) buying a currency pair involves buying the best currency by selling the quiet currency . 2) selling a currency pair involved selling the best currency bye-bye in the quote currency. technical Jargon: Entering the world of foreign exchange trading is half an hour during process, overloaded with a plathora of Technical jargon. technical and fundamental analysis: technical analysis typically helps define when to trade. Assume you recognise the underline fundamentals are pointing to a valley in the British pound versus the US dollar, through the technical picture trade at the underside of strong resistance s, this suggests buying the market is at this point. What's the resistance is taken out, a bi order code then be taken as now both technical and fundamental studies turned in in Unison. Fundamental analysis helps answer the question why our market is moving in the particular direction. For example, is the currency pair railing due to the Federal Reserve accepted to hike rates in the near future, or in the move fuelled by a country's political stance. knowing what may cause market to move helps in down market direction. .
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