How Does Currency Trading Work?
“My name is Bill Rae. I’m with Alumni Financial Services. I’ve been in the business world for well over 20 years predominantly in finance. Today, we’re going to talk about how currency trading works. Very interesting: What is currency trading? Currency trading, in its simplest explanation, is the investing or betting, if you will, that one country’s currency will rise or fall against another’s. For instance, the U.S. dollar. Our…is our dollar stronger than the European dollar, or is the European dollar stronger than the U.S. dollar? How it actually works is the same way, if you will, investing in the U.S. stock market. The exchange or brokerages need to have your money there as you bet or, if you will, invest. And if you bet right, you win. If you bet wrong, you lose. High risk, high reward. It is open or ongoing, if you will, 24 hours a day. For instance, in the United States, we operate from nine to three. It follows the time zones, if you will. So currency exchange really is a 24-
