Jessica,
Here is a little info for you on Forex:
Beth
FOREX INVESTING
Some Forex terminology
Pairs,
Base Currency,
Cross Currency. Currencies are always traded in pairs, and we are going to focus on just four. These are:
<UL>
<LI>
EUR/USD = Euro / U.S. Dollar
<LI>
USD/CHF = U.S. Dollar / Swiss Franc
<LI>
GBP/USD = British Pound / U.S. Dollar
<LI>
USD/JPY = U.S. Dollar / Japanese Yen </LI>[/list]
The currency on the left is called the
base currency, while the currency on the right is called the
cross currency. So in the
EUR/USD pair, the
base currency is the Euro, and the
cross currency is the U.S. Dollar. The market establishes a rate for each currency pair, and this can change substantially every second.
To understand the rates, think of one (1) of the
base currency as being equal to the
rate of the
cross currency. For example,
EUR/USD = 1.2274 means that one Euro (the
base currency) is equal to 1.2274 U.S. Dollars (the
cross currency).
Lots. In the stock market, you buy and sell
shares; in the Forex market, you buy and sell
lots. Most
FREEDOMROCKS Wealth Builders will be trading 1K
lots, each
lot representing 1,000 of the
base currency.
Leverage. Forex brokers offer buying leverage at various ratios. A common ratio is
100:1, which means that a 1K lot could be purchased at 1/100 of the base currency value. For example, a 1K lot of
USD/CHF would represent $1,000 in U.S. Dollars, but a
leverage of
100:1 would allow its purchase for just $10. Because Forex brokers offer leverage as high as
400:1, it is possible to purchase this lot for as little as $2.50 (1/400 of $1,000).
Here's the example again:
1K lot of USD/CHF. The base currency (the one on the left) is U.S. Dollars.
<UL>
<LI>
1K lot = 1,000 of the base currency.
<LI>Buying
1K lot of USD/CHF is buying
$1,000 U.S. Dollars.
<LI>The
100:1 leverage means you can buy a 1K lot for
just $10, because $10 is 1/100 of $1,000.
<LI>With leverage as high as 400:1, it is possible to purchase this same 1K lot for as little as $2.50. </LI>[/list]
PIPs. We make
profits in the Forex market by gaining "Price Interest Points," or
PIPs for short.
A
PIP is the smallest possible rate movement in any currency pair. A 1-PIP movement is worth approximately 10 cents for each lot.
The KEY To Profitable Trading
The way to make money in all forms of trading is to SELL at a higher price than you BUY at.
FREEDOMROCKS provides a zero guesswork, structured approach to help you achieve this very thing! How is this possible?
Let's use an example:
Start with the EUR/USD currency pair at a price of
1.2274. The question on everyone's mind is...
will it go UP, or DOWN?
"The truth is... WE HAVE NO IDEA,
and neither does anyone else.
We're just WILLING to admit it!"
Nobody can truly predict which direction the markets will go, they can only make educated guesses. So, rather than try to predict the direction of the market,
FREEDOMROCKS's system is designed so that whichever way the market moves,
WHEN IT CORRECTS, we come away with money in our pocket.**