How to Make Money Trading Currency - Can We Really Get Rich Trading Currency?
The answer of the question is a big yes! Forex refers to an exchange market where currencies are purchased and sold
. A forex market functions on similar lines as those of a stock market. People started to make money trading currency from the 1970s when free exchange rates and floating currencies came into existence.
Investing in Forex is one of the most rewarding ways to make money trading currency. Though there is a potential risk involved as in any other speculative market, the returns could be enormous too from trading on the Forex market. The Forex market is so big that no individual or group can influence the market to suit their means and ends.
So when an investor is trading in currencies, he or she has the same chances of making a profit or loss as other investors through out the world - no one has an edge over other investors. Short term investment is riskier and requires far more follow up compared to long term investments.
The Forex market is the largest financial market in the world with liquid funds with trading to the tune of 1.5 trillion US dollars per day. So, there is a huge chance to make money trading currency. But, it has to be done with a little bit of knowledge and care to make sure the investments yield good results and minimize losses. The Forex market attracts investors with different strategies for trading varying from very small to very large accounts, from low risk to high risk strategies and short term to long term investments.
There is no fixed exchange for the Forex market. Forex trade happens 24 hours a day and last from Sunday afternoon till Friday afternoons. In several time zones across the world, there are Forex dealers who will be quoting in significant currencies.
Investors who seek to make money trading currency will do so through such dealers once they decide what currency they would like to buy. Marginal trading is trading with borrowed capital. It is quite a popular trade method because there is no real money supply involved in this case. With this method, investors can carry out large transactions cost effectively and quickly.
There are two broad strategies in Forex trading - technical analysis and fundamental analysis. A person choosing tech analysis looks at highest/ lowest quotes at opening and closing and the volume of transactions to make decisions while for fundamental analysis they take into account current situations in a given country.
How to Make Money Trading Currency - Can We Really Get Rich Trading Currency?