Friday, July 2, 2010

►How do I turn a profit using Forex?

Just as with any market, you make funds by purchasing low and selling high! Buy for less, sell for more! All you do is take advantage of fluctuations in the relative values of world currencies. Each currency's value changes every day in the money exchange market. All you require to do is use these fluctuations to your advantage.
One thing we'd like to mention about money exchange on Foreign exchange, these every day fluctuations are actually 100 times greater than the actual fluctuation (for example, around 1%). Usually speaking, can offer trading ratios between 1:10, 1:100, 1:200 and 1:500. So let's do the math, if the exchange rate of your given pair of currencies increased by 0.6% over the last few hours, then you'll bag a profit of 60% on your original investment! All of this can happen over the coursework of a single business day, or as quickly as a matter of minutes.
Best of all, you don't risk losing anything over your margin! There is absolutely no limit to your feasible profits, but you seldom risk losing anything beyond what you originally invested.
Also you have the power to select your pair of currencies, and their amount, based on which way the market's heading, and still turn a profit. It makes no difference which way the exchange rate is headed, down or up, because you always have the choice of buying US dollars and selling Yen, or the other way around - buy Yen and sell US dollars. And no, you needn't actually own any particular currencies, or have them in your hand, in order to make transactions with them on Foreign exchange (to buy them or to sell them).

No comments:

Post a Comment