Invest in Forex

Foreign Exchange (Forex) is the exchange between foreign currencies. It is primarily used for trading your money, and it usually includes high risk and leverage. But what if you can invest in it ? It's possible, you can be an investor and reduce risk, while making money on the way there.
If you trade Forex ,you have probably noticed that your trades have received or lost money due to swaps. There's a reason for that. It's the change of interest rates between currencies. This means that you can either gain interest, or pay interest. It all depends on what you short and what currency you go long with. Look at the currency's interest rates and make sure you go long with the currency with the higher interest rate.
The amount of interest usually depends on how much leverage your money has. Let's say a currency pair has an annual yield of 1%. If you have a leverage of 1:100 on your account, your money that is used on the trade will double in one year, giving you 100 percent interest. If your account has a leverage of 1:10, you will get an annual interest rate of 10 percent.
What makes a good currency pair for this kind of investment ? Well, always remember that you should get a currency pair that pays you interest, so you should go long with the higher yielding currency. Also, make sure that you choose a currency pair that has a long term trend, Forex is risky and unpredictable.
This kind of trade (or investment) is called a carry trade in Forex. Remember that you should always receive interest and get gains from the movements of the currencies. Interest rates usually change every 6 months.

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