LONDON, August 13, 2012 /PRNewswire/ --
On Thursday 9 August, the euro was pushed lower as the fate of the eurozone was once again unclear as the European Central Bank (ECB) failed to act with enough speed to rescue the flailing single currency.
The euro took a further hit following disappointing German data showing industrial production down 0.9% for the month of June.
With the stability of the euro changing weekly as its stability has come to rely heavily on comments from the ECB's Mario Draghi and data out of Europe, how will you trade forex?
In our following guide, we look closely at forex trading provider City Index and how you can trade the EUR/USD with the potential to profit, regardless of whether the euro appreciates or depreciates against the US dollar.
Trading Forex with City Index
Trading with a City Index forex trading account enables you access to 37 spot forex markets, allowing you instant exposure to currencies such as the major fx currencies such as the euro/dollar to the minors such as the nokki.
Unlike in traditional equity markets, trading forex enables you to trade and profit on any price movement up or down.
As a forex trader with City Index, you can go long and buy a currency pair when you expect the first currency to strengthen or appreciate against the second currency.
In the event you are correct, your profits will rise in line with any increase as the exchange rate goes up.
Alternatively, you can go short and sell the currency pair when you expect the first currency will weaken or depreciate against the second currency - seeing your profits rise in line with any fall in the exchange rate.
It is important to remember however that leveraged forex trading involves greater risk of loss and may not be suitable for everyone and you can lose more than your initial deposit if the market moves against your position.
Free Forex Trading Tips
If you found this article helpful, you can find a range of free forex trading tips, guides and articles through the City Index website.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.
We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk for details.
SOURCE City Index