Making money from forex without trading may sound like to a bad joke too many people but that is because in a world where information is doubling in hours, there is always a possibility for an information gap. For one to miss a few updates in one area or the other. The only issue is for one who is bent on making extra cash or multiplying your sources of income this should be a big piece of news especially because it’s true, convenient and really cool. If I may add, making money from forex without trading is not entirely new as it may seem, it has made some people rich already, before you start feeling bad at yourself for missing out on the action, let take a tour at this great opportunity so you can join the band of those easily making money from forex without trading.
HOW IT WORKS
Well before we get into the action, I would want to assume safely that you understand what forex is, enough to know what it entails, what is sold and what is bought. If not, lets me do a quick run through the basics, it will be need for a full understanding of the concept we will open up later. Forex or foreign exchange, in full, refers to the business of trading in currencies. That is the buying and selling of legal trader. Why anyone would want to sell or buy money, you should ask. Aren’t we meant to be in business to get money why would someone be selling his money? This has a particularly simple answer. Well, to get more money. The idea is this, when countries or better still business buy from other countries not using the same legal tender as us, they ordinary can’t use the local currency to purchase without first converting to the currency local to the supplier of the goods, for instance. To convert one currency to another actually involves buying the desired currency with the one in hand. The mediators of this exchange are usually banks, but individuals too who have this desired currency can sell it in exchange for the local one being offered. So where is the business in this? The key word is exchange rate, these two countries whose legal tenders are being exchanged like in trade and batter, would obviously have different exchange rate, this makes it possible that after the exchange one of the traders will end up with money worth more than what he gave for the exchange rate. You will but that there are more factors that this that affect foreign exchange. Yes there are much more factors than this and that’s why many people hate trading forex.
WHAT MAKES IT POSSIBLE
Trading forex needs time, energy, guts, self control an analytical mind. This combination that is found I few men is now artificially available in machines. How does it work? Deep neural networks, natural language processing and a lot of technical miracles have made possible algorithm in form of software that can easily replace any average person on the forex trading desk. And their advantages are mind blowing. Our natural limitations such as fatigue show of emotions, bias and slow processing of information is not a problem to these systems which are powered by artificial intelligence.
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.