Technical analysis strategies,

As defined above, foreign exchange trading is the buying or promoting of 1 currency in opposition to every other in an try to take advantage of a alternate in the preliminary exchange charge of the two currencies. This is the motive why currencies are traded in pairs. Forex profits can come from price movements in both guidelines. If you buy, you're making a income when charges move up. If you promote your profits while currency charges fall. This is how both trading scenarios paintings.

i) Profit from trade rate appreciation
A foreign exchange trader makes a make the most of an boom in the trade fee if the bottom currency (i.e., the currency indicated at the left within the forex pair) is bought.

In other words, if a dealer buys GBP / USD or opens a long role on GBP / USD, a earnings might be made if the rate at which the transaction befell increases and the transaction is closed at the new charge.