Foreign Exchange (FX) refers to foreign exchange margin transactions. From 1988 onwards, the law was revised to start trading in Japan and started. Of course, investor’s purpose in FX is to earn money, but how does FX trader profit? What is done there is the profit from foreign exchange gain.
Briefly, there are various currencies such as the US yen, the euro, the Australian dollar, the NZ dollar, the British pound, the Swiss franc, and the like in the world in the world. And those currencies are constantly changing due to the policies of each country and the economic situation. In FX it will be a transaction to make profits by buying and selling those fluctuating exchange rates.
Let’s use the dollar most commonly seen in news and others.
I bought a dollar when the dollar yen was 82 yen.
And since it became 85 yen after 4 days, I will sell that 1 dollar. As a result, the difference of 3 yen is your interest.
Basically, the FX transaction will be like the above flow. However, in the example like the above, it feels a little lonely that the profit is only 3 yen. Then increase the amount to trade and if you trade 10,000 dollars this time from 1 dollar this time the profit will simply be 10,000 times 30,000 yen. But if you calculate $ 10,000 for a dollar of 82 yen, you will need 8.2 million yen for funding, right? It is not easy to prepare such a large amount.
Therefore, at FX, it is possible to trade using the service called leverage using margin money. Leverage means “lek” if it is in Japanese. By using leverage, you can trade for up to 25 times the amount of money you deposit in FX account as margin.
The best reason why FX is popular is that it is possible to trade profits sufficiently even from a small amount because it is possible to trade up to 25 times the margin with leverage if leveraged. However, there is no doubt that the risk for that is also high, so it is essential to carry out risk management firmly.
In that respect, we are also recommended for beginners of FX because we can conduct transactions with limited risk in optional transactions such as “HIGH LOW”.