How to invest in share market in Other countries
There are many ways to invest in the money of another country; the most direct way is to purchase the currency outright. The good news is that investing in currency can be a fun and rewarding experience for any investor and can help to diversify your portfolio. The bad news is that trading in currency (also known as Forex) is the largest commodity in the world, so making a profit can be quite challenging.
1
Review the convention for how currency is quoted. Currencies are quoted in pairs; that is, two different currencies. The first currency in the pair is the transaction currency, and the second currency is the payment currency.
2
Walk through a pricing example. Let's say you want to invest in Euros. The quote for EUR/USD is 1.50. If the quote moves to 1.5010, it means the Euro is getting stronger and the USD is getting weaker. However, if the quote moves to 1.4990, it means the Euro is getting weaker and the USD stronger.
3
Determine which countries' money you wish to invest in. While any nation can trade currency in the Forex market, most trades are made between five different currency pairs. They are: EUR/USD, USD/JPY, GBP/USD, USD/AUD, USD/CHF and USD/CAD. If the currency you are interested in is not part of the "majors," you can still invest; however, the rate may not be as favorable. Use a currency converter to find the rate for the country you are interested in.
4
Demo three trading accounts. There are numerous Forex trading platforms on the market. Any reputable dealer will allow you to demo the trading platform before funding the account. This will allow you to try your hand at buying or selling your currency, understand how to place an order, understand how the currency moves and understand what advantages one platform offers over another.
5
Open an account. Once you get the hang of it, fund your account and make your first purchase. Do not use more than 10 percent margin at first. This is the equivalent of a loan and is very risky if you don't know what you're doing. Once you purchase shares, you have officially invested in that country's money.
Read more: How to Invest in Other Countries' Money | eHow.com http://www.ehow.com/how_5696005_invest-other-countries_-money.html#ixzz15disl4h3
1
Review the convention for how currency is quoted. Currencies are quoted in pairs; that is, two different currencies. The first currency in the pair is the transaction currency, and the second currency is the payment currency.
2
Walk through a pricing example. Let's say you want to invest in Euros. The quote for EUR/USD is 1.50. If the quote moves to 1.5010, it means the Euro is getting stronger and the USD is getting weaker. However, if the quote moves to 1.4990, it means the Euro is getting weaker and the USD stronger.
3
Determine which countries' money you wish to invest in. While any nation can trade currency in the Forex market, most trades are made between five different currency pairs. They are: EUR/USD, USD/JPY, GBP/USD, USD/AUD, USD/CHF and USD/CAD. If the currency you are interested in is not part of the "majors," you can still invest; however, the rate may not be as favorable. Use a currency converter to find the rate for the country you are interested in.
4
Demo three trading accounts. There are numerous Forex trading platforms on the market. Any reputable dealer will allow you to demo the trading platform before funding the account. This will allow you to try your hand at buying or selling your currency, understand how to place an order, understand how the currency moves and understand what advantages one platform offers over another.
5
Open an account. Once you get the hang of it, fund your account and make your first purchase. Do not use more than 10 percent margin at first. This is the equivalent of a loan and is very risky if you don't know what you're doing. Once you purchase shares, you have officially invested in that country's money.
Read more: How to Invest in Other Countries' Money | eHow.com http://www.ehow.com/how_5696005_invest-other-countries_-money.html#ixzz15disl4h3
No comments
Post a Comment