| The very word trading involves making money. | | | | the Euro, FF for French Francs, GBP for British |
| Otherwise it would have been written as Barter | | | | Sterling Pounds, etc. |
| Trade! | | | | You can get into this market in three ways. The |
| Forex trading certainly involves making money. | | | | best choice of course is to use your bank to help |
| Otherwise, who would want to enter into it? For | | | | you trade. They may have some minimum |
| charity? Forget it. Leave the charity part of forex | | | | amounts involved. The second is to choose an |
| trading to the World Bank or the IMF, which helps | | | | investment institution or banker, which offer a |
| countries. And they too charge a fee, plus a | | | | investment plan which trades in currencies and |
| whole host of conditions. So they are also trading! | | | | stocks in a particular proportion. The third is |
| Forex trading is putting the surplus currencies | | | | yourself. In the last one, you need to check |
| available with banks, financial institutions, and other | | | | whether you are authorised or not under the law |
| authorised brokers, in the forex market, which | | | | of your country. |
| functions throughout the day and night through | | | | Even if you are authorised by the laws of your |
| the year without any break. The surplus currency | | | | country, it is advisable to use the first two |
| is marked up for say an x per cent which | | | | options, while you should go on a spree of reading |
| another bank, or institution in a different country | | | | up about what makes currencies fluctuate from |
| needs to meet its foreign currency needs, and if | | | | day to day. For example, you might find that |
| the offer made suits that country's institution, it | | | | today the Euro is traded against the Dollar for |
| would buy that currency for a negotiated price. | | | | 1.25, and the next day it has moved to 1.26. |
| That way money, which is what foreign exchange | | | | What difference does that change from the |
| is all about, is made to work, and earn, and earn. | | | | second deciman digit 5 to 6 mean? What drives |
| The opposite is also true. Let's assume that your | | | | these changes, on what principles does currencies |
| bank is short of Japanese Yen which it needs to | | | | take short or long term positions, much as you |
| make up for a commitment tomorrow. It tries to | | | | take positions in the stock market? In stocks, |
| buy at as low a price as possible, and offers | | | | you read the balance sheets, the quarterly |
| dollars or Euros in exchange. The difference in the | | | | reports, and the analyst reports on the industry, |
| mark up of the currencies would help your bank | | | | the country, and make your decision. |
| reduce the cost of buying the Japanese Yen. This | | | | You have to do likewise for the currencies |
| is known as arbitrage. | | | | market. It's fairly easy. Get a Grad book on |
| The difference in the buying and selling price is the | | | | Finances and you are sure to get one that |
| profit earned. And it can be substantial. You are | | | | explains it to you. Start with the basics. Learn the |
| not dealing with millions here. You are dealing with | | | | language, the mechanism, the system, the gaps, |
| trillions and trillions of currencies, of which nearly | | | | and then move to the higher level of education. |
| two trillion is the US Dollar. | | | | Since it is a new area for you, you have to |
| Currencies are denoted by short names, as for | | | | EDUCATE yourself. |
| stocks on the NYSE or the NASDAQ. It makes it | | | | Forget the scamsters offering you trades for $1. |
| easier for trades. USD stands for US Dollar CAD | | | | it does not even cover the cost of a sending out |
| stands for the Canadian, AUS stands for the | | | | an email, so how come you are getting |
| Australian Dollar, JPY for Japanese Yen, EUR for | | | | 'thousands'? Stay away, and be safe. |