The answer is obvious: just as with any market, you make money by buying low and selling high! Buy for less, sell for more! All you do is take advantages of fluctuations in the relative values of world currencies. Each currency's value changes every day in the currency exchange market. All you have to do is use these fluctuations to your advantage.
One thing we'd like to mention about currency exchange on the forex. These daily fluctuations are actually 100 times greater than the actual fluctuation (for example, around 1%). Generally speaking, Forex4you can offer trading ratios of between 1:10, 1:100, 1:200 and 1:500. So let's do the math: if the exchange rate of your given pair of currencies increased by just 0.6% over the last few hours, then you'll bag a profit of 60% on your original investment! All of this can happen over the course of a single business day, or as quickly as a matter of minutes.
And best of all, you don't risk losing anything more than your margin! There's absolutely no limit to your possible profits, but you never risk losing anything beyond what you originally invested.
And another thing: you have the power to choose your pair of currencies, and their amount, based on which way the market's headed, and still turn a profit. It makes no difference which way the exchange rate is headed, down or up, because you always have the choice of buying US dollars and selling Yen, or the other way around - buy Yen and sell US dollars. And no, you don't need to actually own any particular currencies, or "have" them in hand, in order to make transactions with them on the forex (to buy them or sell them).
One thing we'd like to mention about currency exchange on the forex. These daily fluctuations are actually 100 times greater than the actual fluctuation (for example, around 1%). Generally speaking, Forex4you can offer trading ratios of between 1:10, 1:100, 1:200 and 1:500. So let's do the math: if the exchange rate of your given pair of currencies increased by just 0.6% over the last few hours, then you'll bag a profit of 60% on your original investment! All of this can happen over the course of a single business day, or as quickly as a matter of minutes.
And best of all, you don't risk losing anything more than your margin! There's absolutely no limit to your possible profits, but you never risk losing anything beyond what you originally invested.
And another thing: you have the power to choose your pair of currencies, and their amount, based on which way the market's headed, and still turn a profit. It makes no difference which way the exchange rate is headed, down or up, because you always have the choice of buying US dollars and selling Yen, or the other way around - buy Yen and sell US dollars. And no, you don't need to actually own any particular currencies, or "have" them in hand, in order to make transactions with them on the forex (to buy them or sell them).
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