Thursday 17 March 2011

About Forex

Trading forex using a curency ETF
(Exchange traded fund)

Most people who trade the forex markets do so through one of the many different forex brokers that are available.
however if u r interested in taking a long term view on a particular currency pair, u do have another cost efective option and thats to buy the corresponding currency ETF exchange traded fund.

If u dont already know that what an exchange traded fund is, its it bassically just a vehicle that tracks a certain instument or group of instruments. so for example a crude oil ETF will move in acordance with the underlying crude oil price and a wheat ETF will move broadly in line with the price of wheat.
plus u can of course find plenty of currency ETFs that track various diferent currency pairs, which is obviously the foccus of this article. u can find exchange traded funds for pretty much anything these days including stocks, bonds, futures and commodities.
u can cimply log in to ur share dealing acount and trade them as part of ur all investment portfolio. these intruments can be bought and sold like ordinary stocks so u dont need to use a forex broker at all.
simillary if u r bearish about the british pound against the US dollars u could buy the coresponding USD/GBP ETF or u could buy a short ETF for the GBP/USD if this is available in ur country so for example if u think the GBP/USD pair is set to move a lot higher in the coming months and years, then u may wish to buy a GBP/USD ETF and treat it as a log term investment.

however they are of course very risky because u can also lose big amounts of money as well, and overall i would say that they are more ideally suited to short term traders rather than long term traders because of the costs involved.
u have lots of options
so if the GBP/USD were to go up by 10% for example, u would make approximately 20% instead of 10% u can even buy leveraged intruments if u so wish. these work by giving u 2* ur overall gains.
they can be bought and sold really easily and they are great for anyone looking to take a long term view on a particular forex pair. anyway the pointt i want to make is that if u think a particulars curencies pair iz undervalued, or u r confident that a specific currency is really going to strenthen is the long un, then u might like to consider buying currency EFTs for ur investment portfolio........................

Wednesday 16 March 2011

Investing In Forex

Investing in foreign curencies is a relativily new avenue of investing.
compare to some of the beter known investment markets such as corporate stocks, this is an unheard of return on investment. its very necessary to mention here that a persons who invests in forex must, without exception, make it a point to learn the detailed, but simple strategies and informations surounding the market.
there are considerably fewer people are aware of this markeet than there r people aware of several other avenues of investing.there are several factors that make this true amoung which, sucesful forex traders earn realistic profits of one hundred plus percent each month. this very facts is what makes the diferences between succesfull forex traders and other traders.

Also, that markeet ofers oppertunities to profit regardless what the direction of the markeet mat be; in most comonly known markeets investors sit and wait for the market to begin and up trend before entering a trade.
even then, investors as a rule must sit and wait some more to be able to exit the trade with a nice profit. given that the forex market produces several up, down, and sideways to trends in a single day, it can easily be seen that forex stands head and sholders above other markets. aditionally there are trading stratgeries, which are taught that provide for compounded profits on top of profits in aditions, free demo accounts are available within the industry for forix tradding, which facilite the sharpeing of skills without the risks losing any capital. and the advantage regarding the time factors in trading foreign currency is a vary atractive point for any investor.
compared to one of the most sought after avenues of investing which often requires forty on more hours each week,namely in the real estate markeet, the forex market requires a much smaller demand on the investors time.

i hope this information gives u a clear understanding of how u can turn ur investing into a true method of making ur money work harder for u.