Earn Money In Up(Bullish) And Down(Bearish) Market

October 30, 2018
1 Comment

Forex trading is very exciting. The market is on the move, and the smallest movement in the currency can mean a lot of profits and losses!

Let me explain this further.

8 of most traded currencies in the Forex market are as follow:

United States Dollar                      USD
Euro                                           EUR
Pound Sterling                             GBP
Japanis Yen                                 JPY
Canadian Dollar                            CAD
Swiss Franc                                 CHF
New Zealand Dollar                      NZD
Australian Dollar                          AUD

Forex is trading in pairs, it means, each transaction involves selling a unit and buying another unit. The following pairs are the 18 most popular pairs in the Forex market.

EUR/JPY                             USD/CAD
EUR/CHFEUR/USD
EUR/GBPUSD/CHF
AUD/CADGBP/USD
GBP/CHFNZD/USD
GBP/JPYAUD/USD
CHF/JPYUSD/JPY
AUD/JPYEUR/CAD
AUD/NZDEUR/AUD

When a pair of currency units is bought and sold, it has a bid-ask rate (for example):
Pair EUR / USD
Ask 1.5422
Bid  1.5420
Which means that:

Buy pairs to bid rates or sell pairs to the supply rate

Buy Euro at $1.5422 Or Sell Euro at $ 1.5420

So what’s your potential to gain profit?

The rate of pairs is constantly changing. One way to make money is to buy a pair at a rate and then sell at a higher rate. Another way is to sell a pair and then buy it at a lower rate.

Yes, in the forex market we can always make money by recognising the trend. If we are in a bullish market we buy and if the trend is bearish we sell.