CURRENCY TRADING

A forex dealer can buy and sell currencies speculating that they will go up or down in value. While owning a currency you bear the interest of that currency, so if you buy New Zealand Dollars, you get 5% while you own it. If you hold Hungarian Dollars, you get 12%.The main difference between FOREX TRADING and EQUITY TRADING is that you are not investing in an instrument, or a derivative, but in MONEY ITSELF. When you purchase shares, you are buying the belief that they will go up, and investing in the experience and quality of the company management. When buying USD, you are essentially investing in the entire economy of the US, as if you are investing in all US shares at once. While single companies may rise and fall, the entire US economy will not be wiped out in one day.While you could argue that buying a countries currency is like investing in that country, in today's world it doesn't quite work like that. American companies have more factories outside the US than inside. 65% of US assets are owned by foreigners. It is more complicated than saying okay, I'm investing in Europe when I buy Euros.CURRENCY TRADING