currency rate exchange

S. dollars. When a trader thinks the base currency will go up relative to the second currency, he "goes long" by taking a buy position. If he thinks the dollar will get stronger, he takes a sell position in the base currency. Suppose he goes long with the euro at $1. 25 and the exchange rate rises to $1. 30. The trader makes a profit because he gets back $1. 30 for every $1. 25 of currency he bought to start with. Traders must learn to manage risk to make money trading Forex.

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currency rate exchange

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The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.

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