BARTEL SYSTEM & FOREX

Let’s go into understanding how this forex trading actually happens. This is something related to our ancient barter system. Forex trading always happens in pairs. This means that there are two currencies that are involved. So, a trader might have a hundred US Dollars and might look at buying as many Euros as he can with this 100 USD. Here the two currencies that are in vogue in this forex trading are the United States Dollar and the Euro. Here, the former that is the dollar is the base currency and the Euro is the counter currency. The trading happens basically on the conversion ration which determines how much of one currency equals how much of the other. In our case, assuming the trader bought about sixty Euros for his hundred dollars, and then the conversion ratio is 0.6. For this buyer to make more money, what he needs to do is to keep track of the rate of the Dollar as against the Euro and check and cash in his Euros when they are at an all time high.