Theoretically, it is not difficult to make money on foreign currency, for this it is enough to have a certain amount of money and knowledge. Banks offer not only the opportunity to enter the foreign exchange market, but also a loan for conducting foreign exchange transactions. With the help of leverage, a participant in the foreign exchange market can double his funds almost every day. In addition to Forex (foreign exchange market), you can also use a bank deposit and a multicurrency deposit.
Instructions
Step 1
The most common Forex currency pairs are USD / CAD, USD / JPY, EUR / JPY, EUR / USD, EUR / GBP and GBP / USD. Bankers do not advise players to take more than 3-4 pairs for transactions, since otherwise it is simply impossible to analyze price fluctuations due to lack of time. Experienced analysts also call for caution when trading exotic currencies. It often happens that it is impossible to find a buyer for them right away, and after some time the course may change dramatically and the player will be left behind. To start trading on Forex, you need to have 100 thousand currency units. A beginner player can apply to the bank for a secured loan.
Step 2
A bank deposit is a more affordable way to make money on foreign exchange than Forex. Although the latter may become more profitable. How much risk you take when making a deposit can be judged by the interest rate - the higher it is, the greater the risk. Of course, in all civilized countries there are deposit insurance systems, but no one can give you a full guarantee of the return of money. In this case, it is important to have data on inflation of the currency in which you make a deposit - if it is higher than the deposit interest rate, then you are more likely to lose money than earn.
Step 3
A multi-currency deposit differs from a deposit in that here you place money at interest in several currencies at once, which will make it possible to make money on fluctuations in quotations. You can transfer funds from one currency to another without commissions and loss of interest, which, by the way, are less than that of the deposit. If you want to make money with a multicurrency deposit, you need to understand that the bank is unlikely to provide a favorable exchange rate. Therefore, it is necessary to transfer funds when a certain currency has a steady upward trend. There is also a minus - banks often require that the amount of the deposit be large enough.
