You would have seen that there are thousands of people who make huge amounts of money through Forex Trading which seems to be a very good way of money making. Many people think that this may be a Fake or Illegal option to make money but believe me its not really Fake unless you perform all the transactions illegally. Lets first understand the Basics of Forex Trading and how the system works.
Forex – Foreign Exchange – Fx
A Forex Trading Market is a Business Marketplace where currencies are traded Online or Offline in real time. When you are selling some currency , someone is buying it making it a complete transaction and people try to buy currencies for a lower price and sell it off for a higher price in order to make a commission which is the main profit from Fx Trading. The Trading can be done 24 hours a day for five days in a week with markets in New York, London, Sydney, and Tokyo.
Its not Easy Money because you need to do good amount of research before you start buying currency and also when you try to sell it off. The currency you first buy is called as ‘Base Currency’ and this is usually in USD[United States Dollars] which is most traded currency ie around 90% overall. The currencies are called as EURUSD, USDJPY, USDCHF and GBPUSD which means that Euro Vs USD currency sales.
One of the most familier reason why people Trade with Forex is because of its highest liquidity which means that when you are in need of money you can sell of your base currency instantly and get the current rated money , where as in other mediums of business its hard to get back the money instantly. 100:1 Leverage – Trading on Margin would mean that you can trade upto 100 times more than what amount of capital you have in your account.
Trading Example :
Last year in January 2008 the USD to INR Exchange Rate was 39.3Rs [Source]
Hence if someone wanted to invest 10,00,000Rs into Forex Trading they would have recieved 25,445 USD for the total money.
Now after a year the scenario is different and in the month of March 2009 the USD to INR Exchange Rate was 51.1Rs [Source]
Purchase – 10,00,000 INR > USD [39.3 Rate]= 25,445$
Sell – 25,445$ > INR [51.1 Rate] = 13,00,239 INR
This means that its around a 30% increase in the revenue from one time transaction , but if you have the time and patience to research then you can get into full time trading and invest in bulk along with regular trading, making less margin per transaction but gaining large with bigger investments. You need to look into all the latest news related to this market and keep yourself updated before you start selling off your purchased currency.
There are several websites which can offer you with free forex trading software’s using which you can buy and sell currency, and they would take 0.5% to 1% brokerage charges on your transactions and this differs for each company.
i hope this will be the answer i am lookin for.pls can you send me details on how this things work
yeh, i use etoro and its great.
thanks for the tips
Dear Amit,
Hello, your blog is interesting to read,especially this particular post on forex trading. I would just like to add something here..
First things first, Get the fundamentals right first! Here are 4 basics for you: 1. Choosing a broker. Select the broker that operates on low spreads. Your broker must have tie ups with large banks. Check to ensure that they are registered with futures commission merchant (FCM) and regulated by commodity futures trading commission (CFTC). 2. Fundamental analysis of the market. This done to understand long-term trends. 3. Technical analysis of the market. This is necessary to understand and analyze the price trends as a result of change in the currency conversion rate. 4. Money management. You must be aware of how much you are investing and how much you are getting back. You have to measure your success from the profit made after a day and not after each trade.
Regards,
Rohit Ahuja
Sir/Madam,
I want to start forex money business. However, before starting it, I want to clear some doubts as under-
1. Are FOREX AUTOMONEY and forex money business safe and genuine? Whether I shall be looser or gainer?
2. How much (minimum) can I yearn per month?
3. I am an Indian. Can I invest and get yearn in Indian currency? Do I need any bank account for transaction of money in this business? If yes, which type of account? Can money be automatically converted from Indian currency to dollar and vice-versa from/in this Indian bank account? Maximum how much money is required to open this account? From which bank account can I draw yearn (money) in Indian currency?
4. I have never done or participated in any internet business. Give me details of forex business. How can I start this business?
5 . How much capital is needed to start this, initially?
6. To subscribe forex automoney signal software credit card of which Indian bank is needed? Maximum how much money will be needed to open a credit card?
7. Can I unsubscribe or cancel this subscription whenever I wish? How?
9. How much money can be invested at a time?
10. Can I hope your guidance to start this business?
11. Besides bank account and credit card what other things I require to start this business?
12. Will I have to have any license and pay tax for this business ?
13. How much bank balance is required to start this business?
14. Forex automoney is signal provider but what is the webside address for forex business? (which webside I have to go through?)
Hi i will be replying to these questions one by one in detail in the form of individual answers.
I like these subjects, pls. guide me how to do the forex business, i am new for this
thank you
i want more details of forex trading