Dear valued trader! North-West Financial Broker is here to introduce you to the FOREX world. We are sure that you have heard a lot about FOREX trades, but not all of you might be familiar with what it is all about. FOREX is largest financial market in the world, with more than $3 trillion being traded from Sunday 5 PM ET to Friday 5 PM ET, FOREX trading begins in Sydney, and moves around the globe as the business day begins, first to Tokyo, London, and New York. However FOREX trading is not that complicated as it looks to be alike. Let us guide you into basics of the FOREX market.

FOREX is a place where world currencies are being sold and bought. Basically brokers trade such currencies as: the British Pound (GBP), the Euro (EUR), the Japanese Yen (JPY), and the Swiss Franc (CHF) — against the US Dollar (USD). During a FOREX trade, if one of your pairs doesn’t consist of USD they called cross pairs, however appears really frequent, but there are no any limitations in trading FOREX currencies, because FOREX market is based worldwide and has “assortment” of different world currencies. First currency listed in a currency pair is called "base currency" and second one is named as “counter currency”. Let’s imagine that we trade USD for EUR, though currencies will be quoted in pairs. For example: Pair U.S. Dollar and EUR will be quoted in the following way: USD/EUR equals to 0.7 (This means that 1 U.S. Dollar can buy 0.7 EUR). After you already purchased some amount of currencies you can sell them according to the rate of change. If the rate of change while buying was less than now, you can gain some profit, but if not, we advise you wait for more profitable rates, because there is a risk of losing your money.

It might be exciting for you to know how much profit was gained or have you got any loss after you’ve done some trade on a FOREX trading system. Let’s look at 2 examples where you can see whether you gained some profit or lose your precious money.