How to make money buying foreign exchange

Buying and selling foreign exchange, the investor can earn exchange rate differences, but also on hand a foreign currency into another foreign currency with higher interest rates, so as to obtain higher interest income.

For example, buy 2 lots of GBP/USD at 1.5002. When the interest rate rises to 1.5052, sell the foreign currency held in hand and make a profit of 50 pips.

Our country currently only allows real trading. Buy and sell the currency is generally freely convertible currency. Banks open foreign exchange trading business, has been determined in advance the type of currency to currency, such as the U.S. dollar against the Japanese yen, the pound against the dollar, the dollar against the Hong Kong dollar and so on. You must exchange according to the pre-determined types.

Expanded Information

Means of Foreign Exchange Trading

Investors can go to bank counters to trade, or trade over the phone, or self-service trading through personal finance terminals. Usually, if the counter transactions, just personal identification documents, foreign exchange cash, passbook or deposit slip to the counter service personnel can be handled.

Foreign exchange trading methods

Technical capitalists can choose market price trading, that is, according to the bank's current offer immediate transaction. You can also choose to entrust the transaction, pre-set the transaction price, and will leave the transaction instructions to the bank, once the offer reaches a predetermined level, the bank immediately according to the instructions to complete the transaction.

People's Bank of China Official Website - Foreign Exchange Trading Tips