Forex trades can be placed through a broker or market maker. Orders can be placed through software with just a few clicks and the broker then passes the order along to a partner in the Interbank Market to fill your position. When you close your trade, the broker closes the position on the Interbank Market and credits your account with the loss or gain. This can all happen literally within a few seconds.
- If you had purchased 100 Euros in January of 2010, and it would have cost you around $120 USD. Throughout 2010 the Euro's value vs. the U.S. Dollar's value increased. At the end of the year 100 Euros was worth $130 U.S. Dollars. If you had chosen to end your trade at that point, you would have a $10 gain.
