Make Money Exchanging Currencies
The bottom line for the value of a given currency is how much you can buy with it. In fact, a relevant question is if you can use your currency to buy anything at all outside of your own country. This latter issue is one that is faced by people in many nations of the world. This fact is why eighty-five percent of all Forex trading includes the US dollar as many minor currencies only trade versus the USD. So, you need to trade currencies to buy things. Can you make money exchanging currencies? Can you find a safe haven currency to make money exchanging currencies or at least not lose any purchasing power? And, when the opportunity arises can you make money exchanging currencies back to your home currency when things are more stable and the purchasing power of your nation’s currency goes farther.
Flight from Forex Risk
The terrible situations in the Middle East are a drag on every currency in the area. It is not a surprise that many choose gold, Euros, dollars, Yen or Swiss francs to preserve the value of their family wealth and lifetimes of savings. So, when things get bad in Iraq, Syria, Lebanon, West Bank and Gaza, Israel, Egypt, etc. those with money often seek a safe haven currency and protect their wealth as the local currency plummets. But, can you also make money exchanging currencies? This brings to mind the old stock investing quote about investing being the best when there is blood in the streets. Every war ends, eventually. Every civil crisis has an eventual solution. These ends and solutions may not be to the liking of everyone concerned but eventually chaos ceases and calm returns. The smart investor looks for when things are at their worst and buys property, stock or currencies. The point is that you can make money exchanging currencies if you get out before things get bad and return when the currency has bottomed out. The issues are fundamental and technical analysis of for Forex pairs. Fundamentals are what eventually determine the value of a currency versus the majors such as the USD, GBP, EUR and YEN. But astute assessment of market sentiment can add greatly to profits as other flee risk long after a currency has bottomed out.