We are trading the foreign exchange market, or the Forex market for short. We’re using the forex market to make money for projects that support this planet’s growth in a positive way. It is an extremely vast market of trading where one currency is traded for the other. This market has been compared to the stock market but instead of shares being sold and bought, they are sold for a price in foreign currency. It’s this very same idea that underlies the Forex market; money is made or lost through trading foreign currency, and thus the term ‘Forex’.
There are actually two main currencies we trade on the Forex market; the US dollar and the Japanese yen. These currencies are paired and both of them play a major role in determining how the Forex market operates.
What Makes Forex Cool?
Because of the large amount of money involved in the Forex market, and the fact that it is a 24-hour affair, it is often times referred to as a ‘liquid market’. This is quite a bit different to the stock market, which can often times feel like a slow stagnant room. The Forex market on the other hand is constantly active. This constantly active nature is what makes forex trading such a potentially risky investment as anyone can literally buy or sell the amount of money as they wish, up to the maximum amount allowed by the broker.
This freedom from monetary limits is also what draws people to forex trading; they feel as if they can manipulate the market and make a fortune with little effort. Although this may not always be the case, there is certainly plenty of risk involved with trading foreign currency. So many people consider it as a great way to ‘make more money to save money’. We’re working on doing the same thing, so we can use the money to make this planet a better place to stay.
Are There Any Other Reason Why We Trade Forex?
Another reason why many people turn to the foreign exchange market is to take advantage of the rising values of certain currencies. For example, the Japanese yen has become increasingly popular. It is becoming more common for Japanese businesses to purchase large amounts of Japanese Yen in order to pay for imported goods. As the Japanese economy continues to grow, this trend is bound to continue. This resulted in the value of the Japanese yen to raise significantly over time – making it an ideal currency to buy Japanese goods and pay for imported items.
However, there is a flip side to this coin. As the value of the Japanese yen rises so do the cost of importing products into Japan. This has the effect of reducing the competitiveness of Japanese goods against those of overseas countries. Which has the potential effect of decreasing Japanese gross domestic product (GDP).
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