Currency trading is buying and selling currency on the Forex market. Traders do this so that they can make money from those transactions. These transactions involve two different sets of currencies, which is why they are often known as “pairs”.
All that is needed to be done is open an account from any of the brokers with as little as $300-$2000. then all you have to do is follow the instructions given on how to go about buying and selling your currency forex trade.
In the U.S.A., as in many countries, private citizens can not own gold bars, and if you do happen to have some, they can be confiscated by the government. They are also extremely expensive, in today’s market, to buy a 1 kilo bar costs around $27,091.00.
One other important concept when it comes to trading on the Forex market is the idea of the “carry.” The carry is the most popular trade on the market and involves a trader going long on a currency with a high interest rate and financing that transaction with a Bitcoin price that has a low interest rate. The idea behind this is for the trader to make a large amount of money from the disparity in interest rates and the fact that the trader is gaining more of the currency that has the higher interest rate.
This is simple economics. If the supply of goods is high, the price of those goods will rise. So, if the supply of certain currency is high, you need more of that particular currency to buy other currencies. This actually indicates that the currency, which was in high supply, is devalued.
Other differences between crpto currency trading and stock trading include the fact that there are no brokers on the Forex market. As a result, there are no commissions. Dealers on the market assume the market risk by being counterparty to the investor’s trade. This means that the trader will make all of the profit that he/she can make, but it also means that the trader cannot buy on the bid price or sell at the offer price like one can on the stock market.
Of course, if Gold is used as backing, then this problem of volatility disappears… as the stock to flows ratio of Gold is enormous; that is, there exists above ground Gold bullion in the quantity of at least eighty years’ worth of primary (mine) production. In contrast, the stock to flows of all other commodities (except Silver) is measured not in years, but days. Like one hundred or so days for the stock to flow of crude oil… or platinum.
Either way, conversion of currency into gold is now possible in a practical form. It has become popular in Germany, Austria, and Switzerland is now spreading to other parts of Europe and also to Canada, the United States, and around the world.