Trading in an exchange market is an interesting and gripping process. Nothing can give you a greater feeling of joy pride than the money earned in financial markets. In our time, the trader, who earns money every month, is rightfully considered the symbol of success.

Let\'s give a concrete example of a possibility to earn money on the changing rate of the currency pair EUR/USD (euro/dollar) in an operation with one lot. Let\'s suppose that the current quote is 1.2379. On the basis of technical and/or fundamental analysis you have predicted that euro will rise even higher, and you have bought euro for dollars, planning to sell it at a higher price. Fluctuation of the pair EUR/USD during the day is from 80 to 120 points. If your forecast is true, then in a couple of days you\'ll be able to close the position at the quote 1.2545. This transaction looks as follows: opening the position, you buy 100,000 EUR and sell 1.2379*100,000=123 790 USD, closing the position, you sell 100,000 EUR and buy 1.2545*100,000=125 450 USD.

So, you have managed to earn 125 450 - 123 790 = 1 660 USD

In order to earn money in the exchange market in a stable way, you don\'t have to sit by the monitor for hours. Thus, for example, at the current price of euro 1.2560, you can come to the conclusion, that when the price reaches the level 1.2605, quick rising up to the level 1.2850 will start. Then you\'ll be able to put limit buy order on euro, which will automatically work on 1.2605 without your additional order, and take profit order, which will close the profitable position, reaching 1.2850, also without any additional order.

Don\' forget that you can get a profit not only from the rising rate, but also from the falling one! For that it would be enough to sell the falling currency in order to buy it back at a lower price. Let\'s give an example. The current price of the British pound against US dollar (GBPUSD) is 1.9400. You think that the pound will fall down to the level 1.900 (usually such fluctuation can be caught within a week).

The transaction looks as follows:

opening the position, you sell 70,000 GBP and buy 1.9400*70,000=135 800 USD,

closing the position, you buy 70,000 GBP and sell 1.9000*70,000=133 000 USD.

So, you have managed to earn 135 800 - 133 000 =2 800 USD

NB!

All the abovementioned examples are given per one lot. If you trade with several lots, the final figures should be multiplied by the number of lots.

Pay attention to the specification of the contracts! Thus, one GBP/USD lot contains 70.000 GBP, one EUR/USD lot contains 100.000 EUR.

See the full version of the specification of the contracts for various currencies here.

THE MAIN TRADING REGULATIONS
Do not trade against the trend. Many new traders try to catch the sudden change of the tendency, then buy at the bottom of the market and sell at the very top of it. This is a faulty practice. In reality it\'s practically impossible to determine the moment when the market changes its direction. The price aim, which seems unattainable today, may turn into an easy passable border tomorrow. It\'s not sensible to open big positions using all the deposit. Any trader, whose deposit is bigger than a certain sum that seems big enough to him, starts feeling himself comfortable and free in the market. But even such a speculator has to insure himself from unjustified risks. You should not invest all your capital into trading. Differentiate your risks. Try to open positions on several financial instruments. Then the risks will be dispersed, and one incorrectly opened position will not influence the state of your financial portfolio. Limit your losses, using stop loss orders! Never cancel a stop loss order. Stop loss orders are your insurance from big losses, and most of successful traders always use them in their trading strategies.

PLAYING WITH RISING AND FALLING
The rule \"buy cheap, sell expensive\" is well known to everybody. This approach describes the point of the play with rising, when your income is derived from the market growth. But one of the advantages of the modern financial market is the fact that you can derive your income not only from the growing market, but also from the falling one. Seeing that some currency is getting cheaper, you don\'t have to wait for the trend turning around to the direction of growing, but you can sell this currency and earn money on its falling. Such an opportunity allows visiting the market more often, earning money.

ADVANTAGES OF MARGIN TRADING
Transactions in the FOREX market are carried out on the principle of margin trading. Margin trading is a comfortable and most popular way for small investors to conduct transactions in exchange markets. A small starting capital allows to conduct transactions for the sums that are many times bigger than the capital itself. Trading in the exchange market, a trader for each invested dollar gets a credit from his broker for 100 dollars more. That is, having 2,000 dollars on your trading account, in the real market you can operate with the sum of 200,000 dollars. Thus, having even a small sum of money, you can open contracts for many millions, risking only by your small deposit.

CMS Forex is one of the industry leaders in the forex market. They have 24 hour customer support, up to 400:1 margin and give their traders the ability to hedge. What really sets them apart is that they are one of the few forex brokers that provide interest on unused margin. They are also one of the last forex brokers to provide fixed spreads, which are as low as 2 pips. They also provide an online forex course to anyone with out having to sign up. Opening an account with CMS is an easy 3 step process as well.

Major selling points for CMS Forex including providing interest on unused funds. Another very popular feature are their trading rebates. They also offer a 1 pip rebate for every 5 lot trade of at least 100k. They also offered a fixed 2 pip spread on the EUR/USD which is fairly unique. They also allow hedging. Their Forex Capsule tool also lets you see very clearly how fundamentals can affect the market on a chart. They also provide daily video recaps.

They have several technical analysis videos to help new traders understand various technicals. Their online course can be accessed without having to sign up for anything and is completely free. They also provide free webinars that range in topics from how to use their software, VT Trader, to understanding Elliot Waves.