How to earn money with Forex

Since it might be a bit complicated for a beginner to figure out how to make money in Forex, see this example:

Let`s say the Euro to US Dollar (EURUSD) rate will increase. In your account you have 2000 USD . At a price of 1.2750 you buy 150,000 Euro for 150,000*1.2750 = 191,250 USD.
This is possible because of the credit, which allows you to make transactions worth 100 times more than funds you have in your account (in this specific case, the maximum sum available for transactions is 2000*100 = 200,000 USD).
After a period of time, the exchange rate increases. You sell 150,000 Euro at the rate of 1.2850 and get 150,000*1.2850 = 192,750 USD.
Thus, after buying at a low rate and selling at a high rate, the difference 192,750 - 191,250 = 1500 $ is your gain. You have earned 75% of initial funds in your account, while the rate increased by 0.8%.

Source : http://www.eglobal-forex.com