How to earn money to Forex Trading ?

You believe that the Euro to US Dollar rate will increase, and on your balance you got 2000 USD. At the price of 1.2750 you buy 150,000 Euro for 150,000 * 1.2750 = 191,250 USD. This is possible because of the credit, which allows you to make transactions worth 100 times more than funds available on your balance (in this specific case, the maximum sum available for transactions is 2000 * 100 = 200,000 USD). After a period of time, the exchange rate increases. You sell 150,000 Euro at the rate of 1.2850 and get 150,000 * 1.2850 = 192,750 USD back! Thus, after buying at a low rate and selling at a high rate, the difference 192,750 – 191,250 = 1500$ is your profit! You have earned 75% of initial funds in your account, while the rate increased just by 0.8%.

Another way of making a profit on Forex is based on the decrease of the quotation rate of the EURUSD currency pair: Having created a real account with 200 USD in it (same type of account – fx4u-classic), you determine the upper and lower limits on the Euro to Dollar chart and sell 15,000 Euro (0.15 lot) at the upper limit for a price of 1.2850 (bid price) USD for 1 Euro, which equals 19,275 USD (15,000 Euro multiplied by the rate of 1.2850). You have funds in USD in your account. Hence, the company lends you 15,000 Euro free of charge, which you can sell by sending a selling request. Due to the leverage, the actual deposit is 100 times less than the sum sold: 15,000/100 = 150 euro. At a rate of 1.2850 this equals 192,75 USD. This very sum is going to be a deposit for a credit (marginal) transaction for your account. The maximum possible deposit in this case equals 200 USD. Then during the day the price drops to the lower limit and you decide to buy 15,000 Euro at a price of 1.2750 (ask price) USD for 1 Euro, which equals 19,125 USD. The 15,000 Euro that you have bought are written off your account towards the repayment of the company loan, while the difference is left in your account.