A lot opens for buying the pound with a margin of 1% in the price of 1.49889 and wait for the exchange rate to rise. If you would like to know more then you should visit Wells Fargo. Sometime in the future, their predictions come true and you decide to sell. Close the position at 1.5050 and earn 61 pips or about $ 405. Thus, in an initial capital investment of $ 1000, there have been more than 40% of the profits. (Just as an example of how exchange rates change in the course of a day, a daily average exchange euro (dollar) is 70 to 100 pips). When you decide to close a position, the amount of deposits that originally it was returns and the calculation of its profits or losses is done. This gain or loss is then credited to your account.
Investment Strategies: Technical Analysis and Fundamental Analysis The two fundamental strategies in investing in FOREX are Technical Analysis or Fundamental Analysis. Most small and medium investors in financial markets use technical analysis. This technique is derived from the assumption that all market information and fluctuations in future of a particular currency is in the price chain. This means that all factors have an effect on the price has already been considered by the market and therefore reflected in the price. Essentially then, what this type of investor is not base their investments on three fundamental assumptions. These are: that the movement of the market considers all factors, the price movement is deliberate and directly linked to these facts, and that history repeats itself.