Forex Arbitrage
@MarkHodgetts (169)
Australia
January 9, 2009 1:24pm CST
There is a lot of hype about in relation to Forex trading and on the face of it it may be quite lucrative.
I remember years ago being told that 90% of the profits that the Bank I worked for were made in Foreign exchange and the market is huge - over trillions of dollars change hands on a daily basis.
I have extensive experience in banking and understand the principles quite well. You buy say Japanese Yen at a certain price and then sell as demand increases.
Until recently it all seemed like too much effort but lately i have been doing some investigation in this area and discovered some really interesting Forex Arbitrage sights and automated systems that look to be quite lucrative.
I am interested to hear from anybody who has had experience in this area.
1 person likes this
2 responses
@Raven1 (577)
• Australia
11 Jan 09
Yes forex trading can be amazingly lucrative. YOu have the ability to leverage your portfolio and exchange amounts of money way higher than your original investment, so the ability to compound your profits are exponential. However, if you get it wrong, then leveraging can also magnify your losses massively as well.
Before you buy anything, before you invest anything - take some time to learn how the spreads work. Know what slippage is. Understand arbitrage and learn to research a potential pairing before you place any trades. Be prepared to place a stop loss order with every trade order you place to help minimize any losses.
If possible, try to find a practice account that allows you to trade using play-money so you get the hang of it first.
When you're sure you understand how the forex market works and how volatile it can be - give it a shot
:)
@MarkHodgetts (169)
• Australia
11 Jan 09
Thanks - excellent advice with some words of caution. I guess for every winner there has to be a loser. Are you trading yourself?
@Raven1 (577)
• Australia
12 Jan 09
Yes I've been a hobby-trader for 3 years. When you get it right it's amazingly profitable. When you get it wrong it stings. Forex is a little easier to profit from compared to equities trading (I have equities/shares, but I'm not a trader. I'm in it for the dividends).
@trinidadvelasco (11401)
• Philippines
9 Jan 09
no, i do not have any experience in this area. i have been trying to get a hand on this kind of source of income. this is how i got into your discussion. kind of, i was hoping that i can get some information on how this thing is being done.
could it be that it is quite a complicated thing so that it is not that easy to learn about this?
as i have been observing those who are into this kind of market, they really have the good times going on their side. but, i do not have the slightest idea as to how to proceed with it.
i have also been considering about buying some stocks. well, as you can see, i do not know either as to how to proceeed with it. i know that i have to start with the minimum required as i will be knowing the ropes yet. anyway, this got me to thinking that at my age now, it is best that i stay out of unknown territory.
@MarkHodgetts (169)
• Australia
9 Jan 09
Actually - I think it's a little confusing with all the language about Candlesticks, Pips, break costs etc, but I think the concept is very simple. There are some very interesting programs out there - I'd just like to hear from a real person that they work before I spent any money on it
