Investing in forex in the process whereby an individual invests his or her money in forex. It used to be business reserved exclusively for banks. Banks used to make millions of dollars in no time through this medium. The story of currency trade has changed over time. Nowadays anybody can invest in forex. In this article, the following is going to be considered:
Factors affecting forex market
How ordinary individual can benefit from forex
The maximum amount one can possibly earn from forex
Risks involved in forex
FACTORS AFFECTING FOREX
Forex can be done with the use of internet trading platform to buy foreign currencies when the value of the currency is low and sell when it appreciates. The following factors affect forex:
Amount of money invested: the bigger the capital the higher the profit one makes from trades.
Rate of inflation: the higher the rate of inflation in a particular country the less the worth of their currency. But the less the rate of inflation the higher the value of the currency.
Interest rate: increase in the interest rate increases the worth of a currency while decrease in the interest rate decreases the value.
Exchange rate: this have to do with the worth of particular currency compared to another currency.
Public debt: the higher the public debt the less the value of the currency and vice versa.
Gross Domestic Product: the higher the GDP the higher the worth of the currency while the less the GDP the less the value of the currency.
HOW ORDIANARY INDIVIDUAL CAN BENEFIT FROM FOREX
An individual interested in forex will first open an account. There are a lot of different brokers one can open as account with. It is important an individual carefully check the services offered by the broker before registering any. The following are accounts available for individual wishing to invest in forex:
Micro/ mini account
Premium or VIP account
THE MAXIMUM AMOUNT ONE CAN POSSIBLY EARN FROM FOREX
Investing in forex have many advantages which include the fact that it runs twenty-four hours and the internet trading platform does almost everything for the trader. The higher the amount one invests in forex the higher his or her possible profit. An individual can make 9-15% of the amount he or she invests per month. It should also be noted that it is also possible that one will also lose depending on the market condition at any particular period of time. The amount one will make in forex depends on one’s skill in the business. It is possible to turn $100 into millions of dollars in not many months.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.