(example, using the Easy-Forex platform
Step1: Deciding to perform a Forex deal
You have an intention to trade Forex, and you have your own reasoning for doing so - e.g. you feel that the USD will increase compared with the EUR. The EUR/USD exchange rate is, at the time, around 1.5000 (the common presentation of the Euro-US$ pair is EUR/USD, meaning 1.5000 US dollars for 1 Euro). Your feeling can be based on your experience, or on technical analysis, or fundamental analysis, etc. For whatever reason, you belive that the USD will rise to around 1.4850 (EUR willbe down, which means USD will go up. Or you will need less USD for 1 euro). You want to profit if your forecast is correct, and so choose to make a trade.
Fundamental Analysis
Fundamental analysis is a method of forecasting future price movements of a financial instrument based on economic, political, environmental and other relevant factors, as well as data that will affect the basic supply and demand of whatever underlies the financial instrument. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. One major advantage of technical analysis is that experienced analysis can follow many markets and market instruments, whereas the fundamental analysis focuses on what ought to happen in a market. Among the factors considered are; supply and demand; seasonal cycles; weather; govemment policy.
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