Making Money With Currency Exchange Rates

1. Study and learn as much as you are able to about both the short-term and long-term outlook for that currencies of different countries so you have some basis for that trading decisions you make.

2. Create a currency spread making use of your commodity trading account. This is where you purchase one currency and sell another, hoping that the gap or the spread between your two currencies will widen. As the spread widens you earn money and as the spread narrows you lose cash.

3. Open a commodities trading account. Commodity accounts could be opened through many local stock and commodity sellers or online. You may be required to show proof you have sufficient net worth or experience in the marketplaces to open a commodity account. Once your account is open and funded you can buy options and futures on many of the planet's major currencies. If the currency you have chosen rises in value when compared to U. S. dollar you earn a profit. In the event that it drops in value, you can lose cash.

4. Buy and take physical delivery of a currency that you simply feel is about to appreciate in value versus the U. S. dollar. You can purchase foreign currencies online, through local major banks, or through particular local currency dealers. Check on fees associated with both buying in addition to selling the currency you are considering. Often the fees are expressed like a BID and ASK price. When you buy a currency you have to pay the ASK price and when you sell you have to accept the current BID price. The BID price is definitely lower than the ASK price. You can make money currency trading so long as the BID price at the time you can sell is greater than the ASK price was at that time you purchased the currency.

5. Open and fund a Forex currency trading account. The FOREX exchange ONLY trades currencies and is open for business twenty-four hours a day, 5 days a week. FOREX exchanges always involve purchasing one currency and simultaneously selling another. If the exchange rates between those two currencies widens you earn money and if it narrows you lose money.