FOREX: LIMIT THE RISKS
forex, fx, currency, investments
The FOREX currency market is highly profitable but risky. We must learn how it works.
In the absence of profitable alternatives for investment, the high volatility of the currencies and the arrival of the largest brokers of other countries who see an interesting market in Colombia, has been promoted the use of innovative investment instruments such as Forex, i.e., the foreign exchange market.
In this market, anyone with a computer and a good internet connection can buy and sell currencies of the stronger countries in the world such as the dollar (USD), euro (EUR), yen (JPY), pound sterling (GBP), Swiss franc (CHF), among others, obtaining high yields in very short periods of time, given the high volatility of these markets. Foreing Exchange is, undoubtedly, the world’s largest financial market, with transactions around the US$ 1.8 trillion per day, as well as what boards traded Nasdaq and NYSE in a year.
Before the large amounts that are traded daily in currency markets, is practically impossible a manipulation, which makes it a very transparent and liquid market. Moreover, since the great centers of negotiation of currencies around the world, such as Tokyo, New York and London open gradually, is a market that operates 24 hours a day.
However, the characteristics that make it more attractive are the high degree of leverage that allows and be a market in which can be profit (or loss) when currencies go upward or downward. With deposits ranging from US$ 300 might be taken positions of up to US$ 60,000, i.e., up to 200 times the capital taken into account. The risk is that it could run out of margin to support the operation with significant variations in exchange rates and you could lose it all.
Forex as a speculative investment in high risk, high losses, the main recommendation may occur in which is precisely not to invest resources in this market that affect your financial situation or your lifestyle if you lose them.
How to do it
The person who wants to invest in Forex can be done directly or you can search the administration by an expert (managed accounts). If you’re trading directly, be sure to have a friendly, easy to understand, reliable platform and allows operations in real time, because a minute of delay when placing the order is reflected in a change in the price of the currency. Serious entities have with demos (demo software) so that people try the platform before investing. Do so at own computers (never in an internet cafe).
If you opt for a controlled account, make sure who is the trader, his record of operations, check your profile and experience, talk with clients who have operated with him. In short, everything that allows you to know the type of professional that is giving her money. There are many people who take a basic course and go to manage accounts as if they were large investors.
Since Forex there is a fixed or annual return guaranteed, it is best to be wary of companies that guarantee you a high profitability in the short term, because they very likely have to take very high risks to generate them or they are doing other things. Less still if not open you account directly with the broker.
For Jairo Sánchez, President of FIT Forex Investment Team, pioneer in Colombia in the Forex market, the important thing is to be in a regulated market, and have a good trader. Only Forex is regulated in countries like United States and England. “Look for serious and competent entities that have all records required by the NFA (National Futures Association), entity responsible for monitoring and controlling investments in the stock market” added Sanchez.