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How marks an article as reader-approved once it receives enough positive feedback. It also received 123 testimonials from readers, earning it our reader-approved status. Trading foreign exchange on the currency market, also called trading forex, can be a thrilling hobby and a great source of income. You can trade forex online in multiple ways.
The type of currency you are spending, or getting rid of, is the base currency. The currency that you are purchasing is called quote currency. In forex trading, you sell one currency to purchase another. The exchange rate tells you how much you have to spend in quote currency to purchase base currency. A long position means that you want to buy the base currency and sell the quote currency. In our example above, you would want to sell U.