Buying and selling at a higher price can be likened to traditional business in that you buy wholesale or cheaper and sell for a profit. Being in a position that you want or predict will rise is called long position.

The twist in forex is short-selling or being able to sell and then buy back at a cheaper price for profit. The reverse scenario applies. You sell when your training tells you the price is going to fall. You can then close after a price lowering of however-many pips.

The above looks like big-numbers, however with a leveraged account, you can trade with a 100:1 leverage, meaning you only need a margin deposit 1/100th the size of the amount of currency you want to control, ie $1-2000 will give you enough leverage to control 100,000 dollars of currency.

This makes profits high, also potential losses. For a 100:1 account trading GBP/USD or EUR/USD, each pip movement is worth $10. Therefore, in the above example fo a long position, you would have earned $350 for your one trade. It might have taken a few minutes, it might have taken a few hours.

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