The world of Foreign Exchange
- Jan 19, 2021
- 3 min read
Written by: Sukanya Datta, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
How many of you have wondered about making money by just being at home? How many of us have children doing part-time jobs? Would we like them to earn their own at an early age? Have you pondered there are various to keep yourself and your children busy in an effective way even during a pandemic? The simplest trick is called “learning.” Nothing beats knowledge. Many suffer financial debts; some need to earn for their daily bread and butter while some need to cater to their daily expenses. One of the approaches is FOREX.
Forex stands for Foreign Exchange that is a global currency exchange between nations. The market talks about how currency relates to one another depending on international businesses. Let’s discover how it’s different than the rest.
How does Forex work?
The trade between different currencies is decentralized. The rates and interest rates are often regulated by the country’s central bank. The central banks also depend on inter trades of countries and political scenario.
Flexibility of Forex?
Every country have their own time zone, and forex operates over 24 hours every week globally. Major markets close on Friday at EST time zone, and some reopen on Sunday midnight. Thus taking advantage of this, a person can even passively trade. Moreover, trades over different schedule over the same time zone also boosts durability.
Why important?
Because it is so flexible that you can make more money throughout the week, long term and short term trades gives the trader an open-ended edge. Moreover, there is high liquidity and high profits can be earned from short trades as well.
How can you benefit?
We all must have heard or even faced that instant money earned can flow away if not taken care of. Trading mindset is of utmost importance. Often while making profits, mind can easily lose focus and be tempted to “invest” more and earn bigger. But NO! This is NOT gambling. If trading is done with such a mentality, then nobody would emerge as a winner. It’s true that the more the investment, more the gains, but if this is used as a roulette, heavy losses may come its way. In this market, assets are often known as positions. Such positions can also be held for a short duration ranging from 5minutes to 4hours and thus giving added gain.
Q n A:
Is Forex similar to the stock market or options?
The simple answer is NO. Stocks are monetary certificates offered by companies listed through IPO. They operate only during business hours. Some offer after-hours trading for few hours. Options are a type of contract offered by companies that allow people to trade over a certain period of time.
Can I start Forex for as little as $100?
Yes, you can, but you will not make much profit. As a new trader with less capital, many would be wary of investing. But for a long term profit, it is better to start off with more funds. Check out the dollar profit for diversified funds:
How much money should we begin with?
Many seminars and gurus will talk about seed investment of $20,000- $50,000. But a lot of us will not like to risk huge amounts while starting out. So the best value for a beginner would be $1000-$5000.
Is Forex only for adults? Can children and teens learn it too?
Absolutely! The earlier they learn, the wiser they become. Many teens opt for a part-time job to earn extra cash. But due to the pandemic, most could not venture outdoors. I believe learning Forex could be a great option to earn money while being at home.
What strategies should I implement?
This could be often confusing, but more could be read in my last article on surviving a financial crisis.
Visit my Instagram for more info!
Sukanya Datta, Executive Contributor Brainz Magazine
Sukanya Datta is an electrical engineer. Along with the tech side, she is also a certified fashion designer. Being a tech lover, she has had a penchant for creativity. Entrepreneurship is a big journey and both tech and fashion have been a boon in her life. From developing monetary strategies and embark on the body positivity mission across the world and bridging the gap between women and fashion.
