How to make money investing in currency - A trade in the foreign exchange market is simple: the mechanics of a trade are very similar to those found in other markets (like the stock market), so if you have any experience in trading, you should be able to pick it up pretty quickly. . dollar:The first listed currency to the left of the slash (“/”) is known as the base currency (in this example, the british pound), while the second one on the right is called the counter or quote currency (in this example, the u. The second channel is the boast to export volumes that occur when corporations either chose to cut their prices in foreign currency terms or accrue the competitive effects for goods that are priced in local currency terms to begin with. There is also substantial volatility on the upside because the moves from central bankers get over-priced by the market, creating a temporal mismatch between when the speculators short the particular currency and when the real money flows come in.
Watch our video to find out the basic processes taking place on the foreign exchange market and how you can benefit from them.