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Forex trading is the simultaneous buying of one currency and selling of another These two currencies make up what is known as a 'currency pair' Currencies are always traded in pairs - each currency is represented by three letters. From these components (and the support of a day-to-day Forex strategy briefing from a margin broker or some other website) you could begin Forex trading in the fx. Forex Trading is weird You can’t just buy or sell a currency, you have to trade them in pairs against each other. So, how do you make sense of this? If you want to sell (or “short”) the USD, you have to match it up with another currency in order to make a transaction You can’t just sell the USD. How to work with forex. For example, if you were trading 2:1, you could use a $1,000 deposit, to control $2,000 of currency on the market. Many forex brokers offer as much as 50:1 leverage. New traders tend to jump in and start trading with that 50:1 leverage immediately without being prepared for the consequences.
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