The rules are:
A trader who thinks the value of his product is going to rise, buys more goods and waits for the price to rise in order to sell. A trader who thinks that the value of a product is going to fall, rushes to sell the goods and make the most of his money. Traders do not always have to lose everything or gain everything, the trade can be stopped in the middle, and such a situation will be expanded upon further later. Let's translate this into terms of Forex market: If you expect the exchange rate of a currency to rise, you will buy it. If you expect the exchange rate of a currency to drop you will sell it. The sum which you profit or lose depends on the volume of the transaction which you perform. The greater the transaction is, the more you can profit, but you will take on a greater risk and the smaller the transaction is, the smaller the profit will be but you will have taken on a smaller risk. Trading currencies is exactly like buying and selling wood, tomatoes or cucumbers. We buy the goods when we think the price will rise, and we sell the goods when we think the price will fall.