To register your interest in a Webinar, please click here.
Read more from Nick McDonald here.
Currency trading (also known as Forex, fx or foreign exchange trading) is fast becoming one of the most popular ways to invest for home-based, part-time participants in the financial markets and people from all walks of life are taking it up. So what exactly is currency trading and how can you potentially make money from it?
What is Currency?
Currency trading is essentially the trading of money. A currency trade is the exchange of one currency for another currency. If you have ever been on an overseas holiday, for example visiting the kids in London, and exchanged your New Zealand dollars for British Pounds at a bank, airport or even the hotel you would have conducted a currency transaction. You sold New Zealand dollars and brought British Pounds on the forex market.
What is the Forex Market?
Individuals, corporations and governments are transacting trillions of dollars of currency transactions around the world each day for a variety of reasons such as buying and selling of goods and service across international borders. Collectively these transactions form the forex market.
How to Profit from Currency Trading
The price of a country's currency will move up and down in line with the level of demand for that particular currency. This constant movement in the price allows traders to speculate on whether they believe the currency will go up or down in value in the future and they try to profit from that movement.
For example someone may speculate that as the US economy improves and investors start to invest money back into the USA, demand will be created for the US dollar which should increase its value. In order to take advantage of this potential price movement they could take for example, $10,000 New Zealand dollars and exchange it for US Dollars. If they are correct and after a few months the US dollar does increase in value then they could use those US dollars to buy back New Zealand but due to US Dollar now being worth more than when they originally brought it they are able to buy $12,000 New Zealand dollars. They have just completed a profitable transaction on the forex market and made $2,000.
How Can You Learn More About Currency Trading?
To learn about currency trading and how everyday kiwis are participating in trading as a past-time then click this link to register for a complimentary webinar or leave any questions or comments below this article.
To register your interest in a Webinar, please click here.
Disclaimer: Please ensure that you have read the GrownUps Terms & Conditions of Use. GrownUps does not recommend any financial product directly or via links to other sites. No articles or linked sites are financial advice for the purposes of the Financial Advisers Act and should not be relied upon in making an investment decision. We recommend that you seek professional advice from a suitable authorised or registered professional which takes into account your personal circumstances before making any decision. Do not sign any document without taking proper advice from a professional and competent person you trust.
- 11 years ago
…….the international banksters trade like crazy every second of the day….with their worthless paper currencies…..which they toss over into the working slaves’ pay packet…..the kids at school should be taught how the real world works…..as for the 50+ ..’freedoms just another word for Nothing Left to Lose…..’