How To Beginner Guide to Investing Forex Trading Currency Trading – MAKE THOUSANDS

The dollar so that would be known just a bit of jargon as a three pip spread that’s not particularly important it’s just a piece of market jargon but it just says we’ll look the gap between the buyer rate and the sell rate if you like is three pips and a pip is the smallest movement in a currency recognized by someone trading it and in reality it can go below that actually aren’t by betting sites for example but here we’re saying the smallest movement recognized for trading purposes is point zero zero zero one for the dollar and the price you pay for buying and selling immediately is three of those okay jadwal tv

The less liquid the currency the wider that spread will tend to be right what influence is that rate it’s all very well saying well I now know roughly what it means to buy and sell the US dollars using sterling for example but why would I if I was looking to trade what influence is the price of a currency or the exchange rate and the answer is there are many factors so what are the influences on a currency pair so for example that last one what’s going to change that rate from say 155 something to either 190 something or 125 what’s going to move that around what’s going to make sterling strengthen rise or

The dollar weakened fall or vice versa now the arts is complicated you can write an economics degree on this stuff but there are some key influences we can break it down number one trade or you could even say trade balances okay countries trade with each other and they build up trade surpluses or deficits to cut to the chase on this one if lots of people want to buy American stuff they need dollars to pay for it so demand for a country’s goods

And services will tend to drive demand for its currency as well and that tends to suggest that a successful economy will have a strong currency and that’s broadly speaking true so that’s one influence number two interest rates and you might say link to that inflation data basically the price for currency is dictated heavily by what you can earn if you own it so if you s you