How the currency moves in the Forex market

How the currency moves in the Forex market

The nature of the movements of prices in pairs in the Forex market strange and volatile and will be afraid but we will simplify it for you and understand them in the lesson of the 37 th of the course of free Forex education provided by the team of Forex site Kokash the leading site in the field of Forex and to teach the art of trading Forex and foreign currencies easily with better provision Forex companies we have been working with for years

The price movement in the Forex market is a fluctuating movement rather than a fixed one-way trend

An example is the euro / eur / usd pair

Let's assume that the currency price is 1.1640 and you expect the price to rise 100 pips which will reach 1.1740

And entered the deal, the price will not rise immediately after 100 points

The nature of the price movement is volatile

You will find, for example, that the price dropped 30 points, for example, which became 1.1610 in this case lost 30 points

It is a floating loss and suppose that the point value is $ 1 which means you are losing $ 30 in this case but it is a floating loss

As long as you did not come out of your class

Then move the price for example 60 points rise from the price of 1.1610 which becomes 1.1670 In this case you are compensated for your loss because you were patient on the transaction and confident in your analysis and the price rose with you 30 points

Then the price drops 10 points, for example, to 1.1660

And then jump the price to reach 1.1700 and so continue to rise and fall to achieve the desired goal

But in total the price during the hour raised 100 points

But he did not lift up once you see it drops a little and then rises and falls and rises and so on

This is called price volatility and now go to the next lesson to know what the corrective movement of the price is