Money Opportunities within Foreign Exchange Markets

Hi everyone! Recently in my business courses, I have come to learn about currency markets and exchange rates. As I was sitting in class listening to the lecture, I realized that trading currencies could potentially be very profitable. When I went home, I decided to pursue this idea and do a little research. Little did I know, some people make a living by trading currencies. This is called foreign exchange market trading, or forex for short. Basically, this system allows people to convert one currency to another currency depending on how strong or weak the currency is. On a given day, more than 3 trillion dollars are usually exchanged in the foreign exchange market. This is an immense amount of cash and part of that can be yours! Currently, the United States dollar is ranked 1 at 84.9% of daily shares amongst the most traded currencies. The Euro is ranked 2 at 39.1%, the Japanese yen is ranked 3rd at 19.0%, and the Pound sterling is ranked 4th at 12.9%. As you can see, there is quite a large margin between the Euro and the Dollar. Changes in exchange rates are usually due to monetary flows or expectations of changes in monetary flows by the changes in the GDP (gross domestic product) growth, interest rates, and also inflation. These factors cause the rates to either rise or drop. There is good opportunity to earn money in the foreign exchange market. You just have to have a good sense of how the various economies around the world are doing.