When you think of buying a home. You specify the expected total value of the house, for example: between 10 to 20 per cent of the total value of the house. The rest of the funds may borrow from the bank. You can assume that you buy a house worth $ 100,000. And you have put up $ 20,000 and borrow the rest from the bank. Suppose then that this house price rose to $ 120,000 in six months, which is very possible in a rising market. Then you can sell the house and doubling your money.
Forex works in the same way - and even more so: with foreign exchange You can control the amount of money up to 500 times greater than the initial investment.
Forex has additional advantages over other types of financial instruments. Investors can enter the market with much smaller amounts of money, and can sell easily, and can short selling.
In the European Union, are Forex closely monitored and tightly regulated. Forex retail market is growing rapidly in the past few years and this in the financial field the fastest growing. And it is one of the reasons that help the IST program, which revolutionized the industry in the past few years of rapid growth. At present, the easier it is executing transactions - every person has access to the Internet and can buy and sell currencies within seconds at any time, in any place.
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