Download foreign exchange investment

By. Doris Reins
 A global,
worldwide-decentralized financial
market for trading currencies. Financial
centers around the world function as
anchors of trading between a wide range of
different types of buyers and sellers around
the clock, with the exception of weekends.
The foreign exchange market determines
the relative values of different currencies.
 The risk of
an investment's value changing
due to changes in currency exchange rates.
 The risk
that an investor will have to close
out a long or short position in a foreign
currency at a loss due to an adverse
movement in exchange rates. Also known as
"currency risk" or "exchange-rate risk".
 The
index in some foreign countries have
produced double to triple digit returns in
the past.
 High
returns attract investors looking for
ways to invest.
Choice #1
 Buy stocks

in a foreign country.
This can be harder than buying domestically
 Contact a
service.
brokerage firm that provides the
Choice #2
 Set up a
brokerage account with a firm in
the foreign country of your choice.
 Are you
stocks ?
going to buy and hold on to the
OR
 Do you
day?
want to make quick money day to
Your answer will determine your trading
style and the amount of work you will
need to do.

Often referred to as day trading

Advantages:

Allows you to invest an amount of money at a high
yield interest rate.

Gain access to the return sooner rather than later.
 Set goals
for the future

How much do you want to have by retirement age?

When do you want to retire?

How much do you want to invest each month?
 Pay yourself
first
 Invest set amount before paying
 15%
others
of monthly income is suggested.

PROS:
secure financial future
no burden to family as you get older



CONS:


Investing in just one or two can cause you to lose
everything.
Money is not easily accessible if needed
 Political

Consider the political stability and property rights of the
country where you are investing.
 Finacial

Chance of loss due to drop in value of foreign currency.
 Cultural

Chance of loss in foreign market due to differences in
consumer preferences