How does Forex trading work?

HI! I'M JOHN. I'LL SHOW YOU HOW TO TRADE FOREX John's chosen Currency Base Quote Currency Currency £/$ To trade: John will have to decide which way he thinks the currency will move. Factors that can affect currencies include: political economical monetary environmental John thinks the £, currently at 1.58131 / 1.58151, will... RISE appreciate So he will buy (go long) John will then need to look at the ASK PRICE of £ 1.58131 / 1.58151 BID ASK So John buys (go long) STANDARD 1LOT 1 standard lot at the ASK PRICE NOTE! NOTE! THERE ARE SEVERAL LOT SIZES BUT. A PIP STANDS FOR PERCENTAGE IN POINT I STANDARD LOT I PIP 10 PER PIP MOVEMENT A CHANGE OF 0.0001 Within an hour John sees that the £/$ is already. 1.58651 To work out John's Profit / Loss, we'll have to examine the change in prices 1.58651 1.58651 - 1.58151 0.00500 1 2 3 $500 The market has moved 50 pips in his favour П = 50 x 10 per pip Profit $500 profit %3D HI NT! PRACTICE ON A DEMO ACCOUNT BEFORE TRADING LIVE VANTAGE FX Vantage FX s the onlina Forax trading am of Enfinlum Pty Ltd which b authorked and regulate d by the AFSL 3220ai. Vantage FX UK Trading Umitad s an Internationally recognisad Forex company basad in the aty of London providing onine tradirg servicas to dlents in the UK, EU and the rest of the world Risk Warning: Trading Darhatives carrlas a high laval of risk to your capital andyou should only trado with moneyyoucanafford to lose. Trading Dervativesmaynotbesultablefor all investors, so plaasa ensure thatyou fully undarstand the risks Involved, and saakindepandentadvice Pnecessary. The FSC and PDS naad to ba raad andunderstood before dadding to antar nto any Dervative transactionswith Vantage FX.The Information on thk sitels not directad at resdents in any country or jurbdction whare suchdetribution or usa would be contraryto local laworrogulation. We are authorisad and ragulated by the Anandal Servicas Authority Rag, no. 50KS7. Risk Waming: Trading Dertvativas and FOREX carrlas a high lavel of risk to your capital and you should only trada with monay you can afford to lose. Trading Dervatives and FOREX may not be sultable for allnvestors, soplezsa ensure that you fully undarstand tha risks nvolvad, and saok Indepandent advice necessary. Plazse ba advisad, the sarvices and products offerad by Entnlum Pty Ltd are not baing offerad within the Unitad Statas and are not offerad to US rasidants or ditrars. Enfinum Pty Ltd snot ragisterad with ary USregulator Includng the Natonal Futuras Association ("NFA) and Commodity Futuras Trading Commbsion ("CFTC").