Currency Trading: Comprehending The Fundamentals Of Currency Trading

But another Mr. Y decides to buy Australian dollars not because he's looking for a sojourn on the Gold Coast, but because they are available at rate which he believes will increase. Confused? Let me explain with the help of an example. Suppose today Mr Y can buy ASD3 in exchange for USD1, and just for a moment, assume that he can sell them tomorrow for USD2, he's going to make a tidy little profit of USD1 on what is widely known as the Foreign Exchange (Forex) Market. But why will the price of ASD3 jump from USD1 to USD2? Because of the fluctuations in the demand and supply of various currencies in the Forex market.



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