Why Is Forex Lucrative?

1032 Words3 Pages
bulb-icon

Recommended: Foreign exchange market introduction

Foreword When individuals first begin wanting to get into online and day trading, they find it difficult to choose between all the assorted trading instruments that are available in the market. They may choose to either go with stocks, options, futures, Forex, forwards, and a lot of additional options. It is hard to know which is best for you till you begin trading them. While stocks and futures have a lot of great things going for them, all the same they likewise have a lot of awful things going for them too. For example, with stocks and futures, you will have to have a lot of cash to get going. It is not meant for those that have fixed funds. Stocks do not truly give you as much leverage either. Even with inexpensive stocks, ($10 and below) you might only be able to stretch your cash so far. For instance a thousand dollars will only be enough to purchase a hundred shares of a stock valued at $10, and with the depressed rate of return that most stocks get, it would take a long time for that investment to truly pay off. Futures are expensive to get started with; there are those that are priced more than others are. If you consider the S&P e-mini, you are able to see that if you don't understand what you are doing, you are able to lose all that you have invested really fast. You have to make certain that this is the correctly choice for you or you will lose everything really fast. However, Forex is just perfect for all the newcomers in the trading world. We will look at Forex here. Chapter 1 Introduction Have you ever had to go to another country and do a currency exchange? If so, you know that exchanging the money you have will either be added to in value or make it less than how much you really gave them. This is called ... ... middle of paper ... ... Another reason why the Forex market is so lucrative is because it's more stable than other markets. You will never have to worry about losing the shirt off your back unless you make high risk investments. If you see a steady trend going on for a few years, it is a good idea to stick to that. You won't see currencies go down the tube like some companies do. On top of that, you have the ability to work directly from home or in your own office. Some people retreat to the beach and will work there. You can use today’s technology to get access to Forex market information or if you want - you can read a good book on tips for the Forex market. There are many things you can do, even if you don't have Internet access when you are out and about. Because you can easily access features and look into reports no matter where you are, this is why the Forex market is so popular.

Show More
Related

  • Edward Jones: Holding a Competitive Advantage in the Broker Industry

    2616 Words  | 6 Pages

    The threat of online competitors is also present to every discount broker that has not switched to online trading or chooses to remain with their current business model and not offer online services. These online trading sites have unique trading capabilities that otherwise are not present at Edward Jones. They offer sound advice on stocks and other investments instantly. Each customer has to call their Edward Jones advisor in order to place a trade. This makes sense to Edward Jones because they want to help prevent the rash decisio...

    Read More

  • Roaring 20's Dbq

    625 Words  | 2 Pages

    With purchasing stocks there is always the risk of losing all your money, but many people didn’t expect that considering how well the economy was doing. In Document two, an excerpt from Ladies Home Journal describes how a man can become rich by slowly saving his money over the course of 20 years. However, many people in that period wanted to get rich fast which would be lead to the stock market crash. The New York Stock Exchange is a major factor of the stock market crash.

    Read More

  • Technology In The Article: How Has The Stock Market Changed?

    2158 Words  | 5 Pages

    With this new influx of technology in the market, trading is being done at such a rapid rate that companies can’t keep up with the changing times. Therefore one day, a company could have millions of dollars worth of investors and the next day have only thousands. Money is being moved at such a rapid rate that the Dow is changing at higher percentiles than have ever been seen

    Read More

  • Great Depression Dbq

    1274 Words  | 3 Pages

    Despite having been around for over one hundred years, people began developing poor judgement when it came to investments in the late nineteenth century. Out of desire to participate in the ever growing popularity of the stock market, people took out large amounts of stock on an installment plan, with money they did not have. As Harry J. Carmen and Harold C. Syrett described in their publication of A History of the American People, as investing in stocks increased in popularity, “the exchange became more of a betting ring.” (Document 5) and “security prices were forced up by competitive bidding rather than by any fundamental improvement in American (business).” (Document 5). The stock market became a game, a challenge that was not fully thought through. This lead to certain businesses getting ahead of others, not due to their success, but because of the uneducated support they were getting from those who knew nothing about the businesses they were investing in, trying to get rich quick. Since those who took out stocks on installment could not pay them off, the stock market eventually collapsed all together. On October 29, 1929, the New York Times published an issue with the headline “STOCK PRICES SLUMP $14,000,000,000 IN NATION-WIDE STAMPEDE TO UNLOAD” (Document 3). Leading up to the ultimate crash, people began to see it coming and at the last second

    Read More

  • International Investment and the Risks Posed by Fluctuations in the Value of Currencies

    1191 Words  | 3 Pages

    Parto, C. (2012, March 8). Protect Your Current Investments from Currency risk. Investopedia.com. Retrieved February 14, 2014 from http://www.investopedia.com/articles/forex/08/invest-forex.asp

    Read More

  • Economic Impact Of Bitcoin

    794 Words  | 2 Pages

    First, the impact of material money market. Compared with the material money, Bitcoin does not distinguish between different currencies, and there are no exchange currency costs or be affected by exchange rate fluctuations. Also, the Bitcoin trades circulation in the global, for the international trade and economic development has brought great convenience. Bitcoin as a virtual currency, with the traditional entity currency, cannot match the advantages of the circulation of Bitcoins will produce a significant change in the currency market.

    Read More

  • Investment Strategy

    1502 Words  | 4 Pages

    To maximize value with a bearish market, we structured an initial investment strategy that focused on inputting funds into income assets in the form of t-bills and bonds. Roughly, we estimated on contributing between twenty and thirty percent into these low risk funds until the market index increased. Once the stock market indices picked up, the majority of our one million dollars in assets was to be places in Canadian and United States equities. The remainder of cash was to be used in derivative instruments to increase potential earnings while keeping the portfolio risk diversified.

    Read More

  • Gold Case Study

    816 Words  | 2 Pages

    Gold mining stocks provide you an option of taking indirect exposure in the yellow metal. They have a better capital appreciation potential compared to direct investment. Not only are they very liquid, but also require low initial investment. But they are quite volatile and riskier compared to other options.

    Read More

  • Why Is It so Difficult to Forecast Exchange Rate Movements?

    1047 Words  | 3 Pages

    The stability of currency values plays a significant role for economic and financial stability. It is not difficult to see the exchange rate fluctuations are widely regarded as damaging. As the movements of the exchange rate have significant and large effects on the trade balance, resource allocation, domestic prices, interest rate, national income and other key economic variables. Then can exchange rate movements be predicted by these fundamental economic variables?

    Read More

  • What are Virtual Currencies

    793 Words  | 2 Pages

    Virtual Currencies are increasingly becoming a part of not only the virtual world but also the real world. There are many problems associated with virtual currencies. Due to its similar to paper currency, a lot of questions have risen regarding its acceptance among the people in the market. Virtual currencies are growing in popularity and although they were large used by speculators who were looking at it as a way to make money by buying them at a lower prices and selling them at higher prices (much like trading foreign exchange).

    Read More

  • The Importance Of The Stock Market

    2323 Words  | 5 Pages

    Companies sell shares so they can expand their businesses and make them better, such as by building manufacturing plants, buying other companies, and developing new and improved products to keep their business profitable. America’s railroads, steel manufacturers, car companies, and telephone companies all started with the help of money from opening up their business to the stock market. The Stock Market started in the 1920’s. People who were smart enough to buy them back then could build up a fortune since the market was growing so rapidly. One who would purchase ten thousand dollars of general motors stock in 1920 would end up with as much as one and a half million by 1929....

    Read More

  • Crypto-Currencies Essay

    1267 Words  | 3 Pages

    I believe trade and transaction of crypto-currencies should be encouraged on a local, national and global level. Although they have suffered major setbacks in the global economy, I maintain that crypto-currencies have a positive future and that they will undoubtedly affect the worlds economy.

    Read More

  • Reflection Paper In Finance

    2185 Words  | 5 Pages

    I am currently majoring in Finance Management. Most of the time people think of finance as just managing money. However, finance is needed for so much more! The finance industry deals with starting businesses, developing new products, expanding markets, as well as everyday things like saving for retirement, purchasing a home, and even insurance. The stock market, asset allocation, portfolio analysis, and electronic commerce are all key aspects in finance. In this paper, I will explain how these features play a vital role in the industry, along with the issues that come with these factors.

    Read More

  • The Foreign Exchange Market

    1006 Words  | 3 Pages

    The foreign exchange market is one of important mechanism in the international business because foreign exchange is an intermediary for all nations in term of the growth of the economy. There are many functions of foreign exchange market in the global economy. In the international business, it uses the foreign exchange markets in four ways. First, the pay...

    Read More

  • Essay On Exchange Rate

    1267 Words  | 3 Pages

    As the foundation for the foreign exchange process, exchange rates are one of the most important elements in business, both internationally and domestically. Defined as the rate at which one currency may be converted into another, exchange rates are used by countries in order to purchase products or services from one another. When examining these exchange rates it is important to note that their two distinct types of rates used for global trade: nominal and real.

    Read More

More about Why Is Forex Lucrative?

Open Document