Investing in foreign currency

Invest in Currencies with profits of 200% weekly

FOREX CAPITAL MARKETS OF THE WORLD'S LARGEST Neither your bank or your brokerage firm, will like you to know this. Thanks to the Internet you can invest your money anywhere in the world, NASDAQ, NYSE, IBEX, AMEX ......

But all these markets FOREX is the largest, 1.5 TRILLION dollars are traded in one day. Well, is not impressed because it is the foreign exchange market is where central banks and private banks worldwide, buy or sell dollars and other currencies.

FOREX is the site where a nation's currency is exchanged for that of another nation. Unlike other financial markets, the Forex market has no physical location, does not have a central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another. The lack of physical exchange enables the Forex market to operate 24 hours a day, covering different areas across the major financial centers. Traditionally, the only means investors to access foreign exchange market was through banks that transacted large amounts of currencies for trade and investment. The trading volume has increased rapidly over time, especially after they allowed the exchange rate float freely in 1971.

Now you can participate in this market from your home or office just by pressing a buy or sell button, and out at your convenience without having to endure the whims or bad advice from your bank or brokerage house without have a million dollars in your account, but can operate with only a thousand dollars.

The question, as I can I earn 200% if exchange rates move in cents?

The answer: leverage. 100-1

This example will be helpful. Suppose you have an incredibly good relationship with your bank and they rely heavily on you to lend money with few guarantees (you need a lot of imagination). On December 18, 2002 you get up and go in the paper that your bank sells dollars to 10.16 pesos per dollar. Will your bank and asks for a loan of 1,016,000 pesos. Surprisingly, the bank asks a security deposit of 1% and 10.160 pesos will be charged an interest rate of 18% annualized without penalty up front to cover the loan. The transaction is done in a couple of hours and you get the money. At that point you tell your bank sell me $ 100.000 and cover them with the loan money and keeps dollars in your account you have with the same bank, the money never left the bank.

On March 5, 2003 realizes the morning that his bank now it buys dollars to 11.20 pesos per dollar, perfect, you go to sell the bank and get paid $ 100.000 1.12 million pesos, with the money you: pay 1,016,000 pesos loan, pay interest 4.5% = 45.720 and 58.280 pesos left over will also recover your deposit. You had a profit of 573% of their initial deposit (10.160 pesos). And that the interest rate on the loan was grim.

Interestingly, no?. But wait .... here's something interesting. Suppose that same day March 5, 2003 you think the dollar down in price, you can do the reverse, that is, now you ask your bank to loan DOLLARS BUT, you change those 100,000 dollars to pesos take into account 1,120,000 pesos. If the dollar goes down and you buy it at 10.70, have an income of 50,000 pesos less interest. This is called a short position.

That is, there are two ways to win, buy low sell high and then, and sell high then buy low. Raise or lower you can make money.

In the FOREX market you can do the same operation but instead take a couple of hours makes a couple of seconds. Also you are not charged interest on the loan. Instead of going to the bank makes from your computer. And do not charge fees of any kind to buy or sell.