“Is that even possible?” – This is the exact question that convinced me to write this article, a “mystery” which I have chosen to clarify with the following response: “Yes, a lot of money.”
However, just as easily as you have managed to earn some cash, you can also end up losing all of them.
The main concept is actually quite simple: except for those major unpredictable events such as the chaos which is now storming China’s economy or the unexpected bankruptcy of some state, a typical FOREX day is characterized by a low rate variation… just like today.
For example, if you invest $100 when the American dollar is showing some signs of increasing and you plan on selling it the following day, you will end up scoring a win.
So far, the process sounds like an investment, right?
Here comes the “miracle” taking place every single day in the FOREX market, also known by the “veterans” as the concept of “margin trading”.
So, what does this “pompous” term means?
For every single euro or dollars invested from your own pocket, the broker offers you the opportunity to invest 10, 50 or even 100 euros or dollars from his pocket…and that’s normal.
You just have to trust the process because this is similar to a loan which the broker offers you in order to earn more money on FOREX: for each $100 you end up investing, you will actually gain the opportunity to invest $10.000 or, why not, much more.
In specific FOREX terms, that means you invested with a leverage of 1: 100.
For example, if you chose to invest $100 with a leverage of 1: 100, you profit will be 100 times bigger.
During a month with 20 working days, you will end up scoring $2.000 in revenue from the comfort of your own home.