Forex Basics

Investing in Foreign Currency

   A global economy creates unprecedented opportunity. New markets are emerging and expanding to a size not previously seen. Among the most dynamic of the markets opening up to investors is the Foreign Exchange Market (FOREX) – the largest marketplace in the world. Unless you are among the rare handful of Americans who have opened a foreign bank account or purchased foreign securities, you probably do not consider yourself to be a currency investor. But you are, whether you realize it or not! Every time you make an investment or even a product purchase, you have become a currency investor. Everything you own is valued in U.S. Dollars: your mortgage, your bank account and even your stocks and bonds. By holding dollars, you have chosen not to own British Pounds, Euros, Swiss Francs, or Japanese Yen. By investing in, and with, the U.S. currency, each of your transactions immediately becomes dependent on the value of the dollar. For the past twenty years, that fact may have cost you more than you realize!

FOR eign EXchange or FOREX is the trade of one currency for another at a set rate called the exchange rate. It is the largest and most liquid market in the world with an estimated turnover of over $3.5 Trillion daily.
Diversification: Portfolios composed of equity and fixed income instruments lack sufficient diversification. Investing in FOREX reduces portfolio risk and enhances returns.
Import/Export: Importers and Exporters can exploit foreign exchange rates and lock in higher profits by making well-timed transactions.
Trade Foreign Exchange: Take advantage of a 24 hours global market by speculating on Exchange Rate fluctuations.
Hedge Foreign Currency Risks: Protect your revenues from foreign currency transactions by hedging against exposure to adverse rate movements.

It's time to learn how to make money with money