Although it is unknown compared to the stock market the currency market, also known as Forex, constantly offers opportunities. This is one of the main differences from the market or the Ibex, which usually less experienced investors focus on the subject. The forex is not like the stock. It is fundamentally a market that what is traded is with the value of money particularly with a particular currency next to another.
Keep in mind that this investment is always made regarding currency pair’s euro / dollar, dollar / yen, etc. and that the reimbursement to be drawn from the operation will depend on the value relative to each other in a given moment of time. Throughout the crisis market analyst at IG, volatility of this market has been enormous. Central banks have intervened to depreciate its currency. In general as pointed, they have learned that we must have an open and a strong weight of exports economy.
This has been the strategy implemented by the major economies of the world in general. Europe, China, United States emerging powers such as Brazil have seen the price range of its currency in recent years largely primarily for one reason they have all tried to depreciate its currency. In general, these powers have come to the same conclusion to combat a new crisis it is better to have a diversified economy and to this end encourage foreign trade is essential. It is precisely at this point that becomes relevant reduction of the currency the cheaper the product the largest business exporter.
A market that always gives benefits
Is now the time to invest in the currency market? To this question our expert business of online trading IG says, depends on which pair is chosen. Based on the forex trade is basically the same as any business: buy low to sell high. The situation, as explains in this market is very variable. This is a market in which it invests primarily short term hours or days at most explains as we face very speculative products.
Now is a good time to invest, but where?
Daniel sheds some light on this issue, noting that there are always stronger against other currencies, but there would be business as possible.
Here are their predictions:
Weak currencies the euro due to the new purchase debt two years ahead of the ECB will remain a weak currency as this policy to a considerable extent devalue its value against the dollar or the pound. It is a good time to invest in euro pairs / dollar, euro / sterling and euro / yen. The Australian dollar being a currency closely linked to raw materials also has big factors intervening in value. This is a “cheap” currency in which it could invest. Japan will increase economic stimulus in the coming months, making it an interesting currency to invest with security also as far as possible. Strong Currencies now the dollar is the strongest currency followed closely by the British pound.
Tips to invest in Forex
Just as in the stock market, the currency seeks most satisfactorily conclude the same operation: buy low and sell high. Buy currency in our bank branch and sell them at the time that the currency will depreciate relative to ours. Thus they returned in this case most of the euros we paid. For example, if we buy dollars worth 10,000 euros, we will get $ 11,400. If within six months we decide to sell, to 1.08, we would get 10,550 euros. The operation over time would have 550 euros of profit.
However, this is not the only way to trade currencies. It can also be by electronic means through financial derivatives. By operating with CFDs IG product features operating with advantage that is the client has the same market value but with a lower investment. With CFDs, instead of having to invest 10,000 to have an acceptable profit you can spend 400 times less.