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Compiled below are Forex trading examples. Please note that these are just examples; be aware that trading Forex is speculative and involves significant risk. For example if you trade GBP / USD your stake would be in Pounds, while in USD / JPY your stake would be in US Dollars; In Forex trading you buy lots, in the Detailed examples of Forex trading, considering buying and selling positions, but the short summary are given, too. Foreign Exchange (FOREX) refers to the foreign exchange market. It is the over-the-counter market in which the foreign currencies of the world are traded. Take an example of a forex trade to help you get to grips with how it all works and how you could be going short on the Yen in no time! To help you understand how forex trading works, view our CFD examples below, which take you through both buying and selling scenarios. CFD trading example 1: buying EUR/GBP. CFD trading example 2: selling EUR/USD. Forex is quoted in how many units of the quote currency you receive for one unit of the base currency. For example, if you are looking to trade EURUSD, the 22 Feb 2012 Trading currency in the Forex market centers around the basic A trader in this example would be buying the AUD and selling the USD at the In the example above you have purchased A$100,000. But because FX is traded on margin with CMC Markets you will only need A$1,000 (1%) to maintain the Forex trading examples. Your profit or loss is determined by the difference between the entry and exit price on a trade. Remember that prices are always quoted with the sell price on the left and the buy price on the right. You enter a trade via one and exit via the other.
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