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The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000euros on that , he would have paid 1085.70 U.S. dollars. One year later, the forex rate was 1.2083, which means that the value of the euro(the numerator of the EUR/USD ratio) increased in relation to U.S. dollar. The investor could now sell the 1000 euros in order to recieve 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments.