How to make money by trading a single asset

Let’s say that there are two versions of the same shirt in front of you, but in different colors. You find both the colors very nice and want to buy both of them. But then again, you don’t have the money to buy both. Now, this is a dilemma but sticking with only one shirt is the best option for you to save some bucks and not waste money you may need for something else.

Traders face some similar issues in the currency exchange market when they are dealing with currency pairs. What is a currency pair? A currency pair is a set of two currencies where the value of one currency affects the other. CFD investors invest in these currency pairs. Due to the difference in supply and demand, they earn money.

However, there is a common question that is asked by many investors regarding this currency pair. The …