Business and Finance

Forex: Profitable Investment

Provided by dealers or brokers in the foreign exchange market so as to make the market more liquid and prices will remain stable. Therefore, traders can close and open their positions fairly at the market price. Transaction fees in the online forex market actually don’t exist, it’s just that there are several fees that vary in number, for example, the fee for withdrawing funds from a forex account. You can learn about high leverage on http://www.cnie.org/highleverage/forex-brokers.html.

Another advantage a trader can get is being able to take advantage of the price increase that comes from the difference between the purchase price and the selling price on the buy order. Meanwhile, for selling orders, the profit will be obtained from the difference between the selling price and the buying or closing price. In addition, there is trading using a margin system where this margin can make the purchasing power of investors higher than their own capital. Of course, the benefits obtained are in two directions where when the market goes up and the price goes down. Of course, this may not apply to other types of investment such as stocks. However, please note that every investment must have shortcomings, including foreign exchange. The first disadvantage of this investment is the effect of fluctuating foreign exchange rates.

Waiting for the value of our currency to strengthen even a little longer so that forex more or less cannot be used as a profitable investment at this time. Another risk is interference from the home government whose currency is being traded on the foreign exchange market, such as intervention from the central bank of that country by increasing interest rates, releasing bonds from the government as well as the government being able to buy foreign currency on a large scale.

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