How could I make money by trading forex?
In the forex market, you are actually doing two trades when you buy a currency (you are buying one currency and selling another). As opposed to the stock market, you have known all along what you are betting for and against (whereas on the stock market you only need to know one stock). You rarely have to pay commission to forex brokers, the way they make money is by giving you a worse spread than the one they get, and then charging you interest on that margin. A spread will usually be two or three points (or ‘pips’). A margin can range quite drastically. There is little regulation so online, it is fairly common to be accepted for a 200:1 margin, some firms will even offer you a 400:1 margin. Points, or ‘pips’ are how profits are measured in forex. (for instance; a pip is 1/1000 of a dollar). With the market operating 24 hours a day, earning-wise, it would be easy to say that you can earn as much as you want. How much you earn and how fast you earn it will depend on the volatility of th
