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Community


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Online Share Trading

Engage and learn about markets and trading online

CURRENCY FUTURES

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dd11
New Contributor
CAN ANYONE PLEASE ASSIST ME -- I would like to buy currency futures but im not sure how it really works. I notice that the euro for example seems to be going up, and the usd seems to be going down. If i had to buy shares which one of the 2 will i get a profit from - the euro or the usd?????
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12 REPLIES 12
asylum
Super Contributor
you get the profits from the 1st currency quoted, in other words if you buy Euro/Dollar and the euro goes up you make money, if you sell the Euro/dollar ( i other words short position) when the dollar goes up against the euro you make money. In other words if you BUY Euro/dollar your expecting the euro to strengthen, if you SELL the euro/dollar, your expecting the dollar to strengthen.
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dd11
New Contributor
THANKS FOR THE HELP. I TRIED TO BUY 1 CONTRACT BUT IT REQUIRES A LIMIT PRICE. HOW DO I DETERMINE WHAT THE LIMIT PRICE SHOULD BE????
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asylum
Super Contributor
have a look at the left hand side of where it says limit, theres a block that tells you what people are willing to buy and sell for. So if you want to buy immediately look at what the sellers are offering and put in a limit price according to what their selling price is,
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Not applicable
And if you are asking these types of questions, then you are going to lose truckloads of money - guaranteed. Suggest you do a lot more homework first before jumping in - seriously!
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asylum
Super Contributor
yes i do agree wit skaapie, whats the hurry rather learn first and lose a little money later , then learn nothing now and lose a lot now,omo.
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dd11
New Contributor
lol, thanks..................thats why im asking these ???????? so that i can get as much info as i can.........its good to ask from people who already know about this stuff.
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Not applicable
check out www.forexfactory.com. Loads and loads of advice, forums and other on how to trade currency futures
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dd11
New Contributor
thanks will check it out
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asylum
Super Contributor
or try standardbank forex trader and open a demo acc its free and a great platform. skaap do you trade forex at all?
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Not applicable
No, not really. But I keep an eye on currency movements and forexfactory is also useful for keeping an eye on major events in global market places
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sponono
Super Contributor
u can also do what I did. I sold only two R/$ futures and watched them for a day. I found out that I dont like the futures market without losing too much. I think I lost about R100 excluding costs.
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ACEP_
Regular Contributor
Yip, that is cool advice! Take the plunge, if the debit is a credit then reverse the jol, double!
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