FOREIGN EXCHANGE MARKET A CURRENCY MINE
Most miners have been mining gold, coal and diamond underground and many have lost their lives while trying to work for their families. The mining sector has supported a lot of people in the past few years, however things have changed this days, there is a new place to mine currencies known as the Foreign Exchange Market.
This is a very safe place to mine currencies. The government, investors, local and international banks, knows it better than others; they started mining long time ago and have made massive profit while doing this type of mining.
Since the currency exchange is not new and has been around in ancient times where people known as (Brokers in today word) were charging people a commission to exchange currencies for them and it seems as this financial culture is here today,
we have huge banks dividing themselves into smaller financial firms operating as Forex brokers , dealers or agents who negotiate the price of currencies within the market, they then get a better price and later charge the commission or spread to online traders. Most Forex brokers have offices around the world and are regulated in their jurisdiction of those countries.
This is the huge financial market in the whole world and most liquid. Many people who have been involved in this market have got their slice of success. Many people have engaged themselves in trading of different currencies.
Currencies are traded in pairs and trough this they have made profit from buying and selling from the fluctuation of the value of currencies, meaning they wait for currencies to depreciate to buy them and later when they appreciate they then sell them for a profit. If you view this market very closer you will notice that its turnover is rising every year.
This Foreign Exchange Market is the root of online Forex trading. Many people around the world are more interested in trading currencies and have started to register to trade with different Forex brokers. Some of them have made their success with Forex Trading, here is the simple trading example that can be done by anyone in order to generate profit.
Let us suppose that the live Trading exchange rate for USD / RAND is 12:00
Vinolia is our today’s trader who is having R 500 000 (South Africa Rand)
She buys USD with that entire amount, which put it in this way:
R500 000 divide by Exchange rate of 12:00
Vinolia is now having about USD 41667 in her pocket
In 2 years’ time the exchange rate rise to USD/ RAND 17: 00
She sells that USD at this exchange rate, which put it in this way:
USD 41667 multiply by 17:00 exchange rate
Vinolia is now having about R 708 339
How much profit did she make in two years?
Normal investment was 500 000 and current amount having is R708 339
R 708 339 — R 500 000
Vinolia is having a Profit of R 208 339
With this simple example you can see how many people have generated profit for themselves and it can also be very easy for you to trade when using this method. Trading of currencies has no central location, people may trade currencies online using different Forex Brokers and they may trade anywhere around the world. Forex traders should remember that the reverse or the opposite can happen when trading, it is very possible to loss some of money that you actual investment.
The easiest way to gain more profit quick is to use borrowings from Brokers, this loan is known as Leverages. Forex traders should always remember that trading using Leverages is more risky than trading without it and also it may work to your advantage, using them may generate more money for you.
