At a time when the global economy is suffering more than its fair share of turbulence, you might think that opportunities to make money from trading the markets are at best negligible. However, it may surprise you to learn that forex trading could yield profits which could boost your personal finances even when prices are on the decline.
Forex or FX is short for foreign exchange and it involves trading and speculating on whether you expect the value of one currency will rise or fall against another. There are many resources online to find out how to trade Forex, such as City Index, but how can it help you to make money?
The first thing to do is find two currencies which you know about (for example British pound and the US dollar). Identify any trends that influence their value and then you’re able to make an informed decision. After identifying two currencies that you want to trade with, and determining whether you expect the value of the first currency to rise or fall in relation to the second (example in GBP/USD, you would take a position based on whether you would expect sterling to rise or fall against the US dollar) you then decide whether to go long (if you expect the first currency to rise against the second) or go short (if you expect the first currency to fall against the second currency in the pair). If you make the right decision when trading forex, you could stand to make a profit.
When it comes to making money, trading forex is leveraged, so to get started, you only need to deposit a small percentage of the full value of the trade you wish to place. As a leveraged product, there is plenty of risk involved, but with the right level of knowledge, caution and timing, you could stand to make significant profits from your trading activity.
With the help of specialist websites and mobile phone apps, forex can be traded anywhere and at any time of the day. As for the amount of profits gained from trading forex, that depends entirely on you. You could use this money to clear any debts you may have, buy something for you and the family or simply save it for future use.