The objects and commodities prices determined currencies, we say $ 10,000 price of the car or that the price of the shirt $ 20, the currency also determine prices in other currencies that say the dollar exchange rate of 120 yen or price 3.5 LE and so on.
Buy and sell currency
When you buy a currency against which you necessarily sell another currency.
When you get on a currency you pay for it another currency.
The currency that you get is the currency you are buying .. The currency paid for it is the currency you are buying.
For example, when you get to pay U.S. $ interview LE's say you bought the dollar and sold the Egyptian pound, and vice versa, when you get on the Egyptian pound and you pay U.S. $'s say you bought the Egyptian pound and sell the U.S. dollar.
No one can get a currency exchange some smiles!!
But in order to get the currency they must pay for it other currency.
Currencies are bought and sold in pairs ..
The currency that you get is the currency you are buying the currency in which paid for it is the currency you are buying.
Buying currency is selling another currency necessarily, and selling currency is buying another currency necessarily.
High and low exchange rates
You know that when demand increases on commodity price rises, and when demand drops, the price drops.
And when the number wishing to buy goods on the number who wish to sell price will rise and when there are more interested in the sale of a commodity for a number wishing to buy will drop in price.
This is called the law of supply and demand Supply and Demand.
This law applies to currency as it applies to anything else.
If the number who wish to purchase a currency more than the number of sellers, the price of the currency rises.
If the number wishing to sell a currency more than the number of buyers, the price of the currency drops.
For example: If you go to the cashier and asked him about the price of the dollar against the Saudi riyal and the answer is that the U.S. dollar = 3.5 SR.
Any that you are required to pay 3.5 riyals for one dollar.
But if there were a lot of people want to buy the dollar, the price will rise and will reach 3.6 SR and then to 3.7 SR and then to SR 4, and the greater the number of people willing to pay Real $ for the greater rate of the dollar against the riyal.
What does the high price of the dollar against the riyal?
This means that you will be required to pay a larger amount of the riyal to get dollars.
This means that the dollar rises and fall riyal interview.
The high price of the coin is a fall in the price of the currency that matched.
And the depreciation of the currency is the high price of the corresponding currency.
Always remember that ..
When the price of the dollar = 3.5 Real meaning that we are required to pay 3.5 riyals for one dollar.
And when the dollar became SR = 4 means that we are required to pay a larger amount of the riyal to get one dollar.
This means that the dollar was up against the riyal or that the rial fell against the dollar.
This means that the dollar has become more valuable than before and that the riyal has become cheaper than before.
And when the price of the dollar = 3.5 Real meaning that we Mtabann pay 3.5 riyals for one dollar
And when the dollar becomes SR = 3 means that we required to pay how much less than the riyal for one dollar.
Variyal became more valuable than before where he became how far less than enough for one dollar, so we say that its price rose.
The dollar became cheaper by where he became one U.S. dollar is equal to how much less of the riyal, so we say that its price has fallen.
So you know that the high price of the currency is low to Saralamlh interview necessarily.
And the depreciation of the currency is rising currency necessarily Almkabh.
You know that the reason that calls for people to buy currencies of other countries are to be used for the purpose of trade, investment or travel.
If the number who wish to trade, investment or travel to the State will increase demand for its currency and thus will increase the price and vice versa.
So the movement of supply and demand caused the rise and fall of currency prices over time in all parts of the world.
Do you've had the idea?!
Since the currency go up and down all the time, why always seek again for currencies that we expect high prices Venctrea then sell them at a higher price and make a profit?
A good idea is not it?
Remember the example of previous cars we've bought a car when we expected that the price will rise and then when it rose already we sold and get more profit.
We will deal with currency also dealing with cars and also deal with any other commodity ..
Will buy the currency when it goes down and sell when it rises and we get a profit from it.
We will deal with the currency as a commodity ..
Here comes the second category of people who buy and sell currencies.
They Speculators Speculators ..!!
Remember we said that the vast majority of individuals and nations buy a currency to be used for the purchase of any goods and services for the purpose of its use as a tool exchange.
The speculators are buying currency not to be used to buy anything, but for the purpose of selling them when the price rises to make a profit from behind which they are dealing with a commodity currency exchange tool.
Since the currency go up and down all the time, they can achieve a lot of profits ..
Buy and sell currencies at a higher price profit Fahakqon.
Or sell currency and buy again at a lower price profit Fahakqon.
This is what you will do!!
Will search for what to expect currency rising price Vtstraeha and when the price rises will sell at a higher price and get a profit.
Or will look for what you expect the currency to drop their price Vtabieha high price and when the price drops you buy at a lower price, and keep the difference as profit.
And will repeat this process continuously ..
If ratified expectations will become multi-millionaires believe me!!
This is what you will learn to do in the coming Entries
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