Showing posts with label profit. Show all posts
Showing posts with label profit. Show all posts

Wednesday, March 7, 2012

What is Currency Trading?

In the world of investment, there are tons of different asset classes that an individual can theoretically trade and profit from. However, one of the least understood among these asset classes is the currency or Forex market. Through this market, individuals and other entities around the world trade various currencies, almost all the time. Using high levels of leverage, massive amounts of money are exchanged on an ongoing basis.

Currency is Fluid

There is a great deal of fluidity in the currency exchange. When you are doing Forex currency trading online with UFXmarkets, you have the potential to profit a lot from this fluidity. For the most part, currencies are not based on anything solid or tangible, with no world currencies being based on hard assets like gold or silver anymore. This fluid value allows them all to be traded.

A currency can literally be worth any amount of any other currency. While many currencies are compared against the US dollar, one can theoretically trade any two currencies against one another. How many Thai Baht is a Great British Pound worth? However many pounds you can get for your baht, of course.