<p>Pretty simple. You just make money on the differences when you buy/sell (taking in to account fees).  </p>

<p>In your example, you start with 1 BTC purchased at $100 USD.  Assuming no fees, you would:</p>

<ul>
<li>Sell at $110 (Profit: $10)</li>
<li>Buy at $85</li>
<li>Sell at $102 (Profit: $17, total: $27)</li>
<li>... and  so forth</li>
</ul>

<p>Now, you could get even more creative, since you can purchase fractions of BTC.  In this case, you could:</p>

<ul>
<li>Sell at $110 (Profit $10)</li>
<li>Buy 1.294 BTC at $85 each for $109.99</li>
<li>Sell at $102 for $131.98 (Total Profit: $31.98)</li>
<li>...</li>
</ul>

CC BY-SA 3.0
2013-11-20T00:47:53.247Z
2013-11-20T00:47:53.247Z
venables
<p>The key benefit of trading Bitcoin against the US Dollar, using the leverage like with other currency pairs is that it allows traders to increase the size of the position with only a limited amount of investment. Check <a href="http://forex-metal.com" rel="nofollow">http://forex-metal.com</a>, they offer bitcoin trading</p>

CC BY-SA 3.0
2013-12-15T19:07:14.977Z
2013-12-15T19:07:14.977Z
Andre
<p>I want to understand something very basic. How does trading work between BTC &amp; USD. </p>

<p>Let's say I have 1 BTC at US 100. The naive idea is "buy low" and "sell high". But I don't grasp how that work, ie, how is possible to profit in both directions.</p>

<p>If the value of BTC change this way (value in USD):</p>

<blockquote>
  <p>110 85 102 40 70 90 115 130 100 200</p>
</blockquote>

<p>What I need to do to turn a profit? And if my plan is that I don't lose more than I invest at the start?</p>

<trading><bots>
Need help understanding how to profit from bitcoin trading (like forex?)
mamcx
# Need help understanding how to profit from bitcoin trading (like forex?)

(Asked by: username_0 on 2013-11-19)

I want to understand something very basic. How does trading work between BTC & USD.

Let's say I have 1 BTC at US 100. The naive idea is "buy low" and "sell high". But I don't grasp how that work, ie, how is possible to profit in both directions.

If the value of BTC change this way (value in USD):

> 110 85 102 40 70 90 115 130 100 200

What I need to do to turn a profit? And if my plan is that I don't lose more than I invest at the start?

**Tags:** trading, bots


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## 2 answers

### Answer by username_1 on 2013-11-20. Score: 1

Pretty simple. You just make money on the differences when you buy/sell (taking in to account fees).

In your example, you start with 1 BTC purchased at $100 USD. Assuming no fees, you would:

* Sell at $110 (Profit: $10)
* Buy at $85
* Sell at $102 (Profit: $17, total: $27)
* ... and so forth

Now, you could get even more creative, since you can purchase fractions of BTC. In this case, you could:

* Sell at $110 (Profit $10)
* Buy 1.294 BTC at $85 each for $109.99
* Sell at $102 for $131.98 (Total Profit: $31.98)
* ...


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### Answer by username_2 on 2013-12-15. Score: 0

The key benefit of trading Bitcoin against the US Dollar, using the leverage like with other currency pairs is that it allows traders to increase the size of the position with only a limited amount of investment. Check <http://forex-metal.com>, they offer bitcoin trading


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