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Welcome to the Forex Pub. |
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If you've read anything at all about Forex, or foreign currency
exchange you know what an exciting investment opportunity awaits.
 In the forex market currencies are always priced in pairs;
therefore all trades result in the simultaneous buying of one currency
and the selling of another. The objective of currency trading is to
exchange one currency for another in the expectation that the market
rate or price will change so that the currency you bought has increased
its value relative to the one you sold. If you have bought a currency
and the price appreciates in value, the trader must sell the currency
back in order to lock in the profit. An open trade or position is one
in which a trader has either bought/sold one currency pair and has not
sold/bought back the equivalent amount to effectively close the
position.
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