ForexSecret123 (30)

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Know When to Buy or Sell a Currency Pair
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• The Forex Secret

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In the followings we are going to use fundamental
analysis to help us decide whether to buy or sell
a specific currency pair.
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Each currency belongs to a country (or region).
So forex fundamental analysis focuses on the
overall state of the countrys economy,  such as
productivity, employment, manufacturing,
international trade, and interest rate
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EUR/USD
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• If you believe that the U.S. economy will
  continue to weaken, which is bad for the U.S.
  dollar, you would execute a BUY EUR/USD order.
•  You have bought euros in the expectation that
  they will rise versus the U.S. dollar.
• If you believe that the U.S. economy is strong
  and the euro will weaken against the U.S. dollar,
  you would execute a SELL EUR/USD order
• You have sold euros in the expectation that they
  will fall versus the US dollar.

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USD/JPY

• If you think that the Japanese government is
  going to weaken the yen in order to help its
  export industry, you would execute a BUY USD/JPY
  order.
• By doing so you have bought U.S dollars in the
  expectation that they will rise versus the
  Japanese yen.
• If you believe that Japanese investors are
  pulling money out of U.S. financial markets and
  converting all their U.S. dollars back to yen,
  and this will hurt the U.S. dollar, you would
  execute a SELL USD/JPY order.
• By doing so you have sold U.S dollars in the
  expectation that they will depreciate against the
  Japanese yen.

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GBP/USD

• If you think the British economy will continue to
  do better than the U.S. in terms of economic
  growth, you would execute a BUY GBP/USD order.
• By doing so you have bought pounds in the
  expectation that they will rise versus the U.S.
  dollar.
• If you believe the British economy is slowing
  while the American economy remains strong like
  Chuck Norris, you would execute a SELL GBP/USD
  order.
• By doing so you have sold pounds in the
  expectation that they will depreciate against the
  U.S. dollar.

• USD/CHF

• If you think the Swiss franc is overvalued, you
  would execute a BUY USD/CHF order.
• By doing so you have bought U.S. dollars in the
  expectation that they will appreciate versus the
  Swiss Franc.

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Margin Trading

• Margin trading is simply the term used for
  trading with borrowed capital.
• This is how youre able to open 1,250 or 50,000
  positions with as little as 25 or 1,000.
• You can conduct relatively large transactions,
  very quickly and cheaply, with a small amount of
  initial capital.

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Rollover

• For positions open at your brokers cut-off
  time (usually 500 pm EST), there is a daily
  rollover interest rate that a trader either pays
  or earns, depending on your established margin
  and position in the market.
• If you do not want to earn or pay interest on
  your positions, simply make sure they are all
  closed before 500 pm EST, the established end of
  the market day.
• Since every currency trade involves borrowing one
  currency to buy another, interest rollover
  charges are part of forex trading.

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THANK YOU
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