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What do I lose trading in the Forex market?

Hi there. Recently, I became quite interested in trading in the Forex market, but I feel like I need to learn some basics first. Can you, please, explain to me how do you lose money in the Forex market? I don’t quite understand the concept. Thanks in advance!

Hi, Tiffany! In the forex market, you are trading currency pairs. One currency is always quoted against another currency. For instance, USD against Euro. When a trader buys the dollar against Euro, he or she is hoping or speculating that the dollar will increase in value, while Euro will decrease. Conversely, when the trader sells the U.S. Dollar against Euro, he is speculating that the dollar will decrease in value while Euro increases in value.

There is a specific strategy used to minimize losses in case if your trade goes wrong. A trader can decide how much of a loss to sustain before exiting the position. This type of order is called stop-loss order.

"I guess if you want children beaten, you have to do it yourself."

Hi there!

If you really want to start this, you should do your best. I'd recommend to find out more about this topic. For example, try to read 'Economics' by Samuelson, Case & Fair, Principles of managerial finance by Gitman. And for trading I'd recommend any book written by Warren Buffet. As for me, I'm trying to be strict with rule: never use your last money or loan-money. Lots of companies might offer you an online educational materials, like this , but better for you not to use it! You should use only your own knowledges!

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