Just a few days ago, Karim Rahemtulla, one of my counterparts at Mt. Vernon Research, stopped by our office in Delray Beach, FL to say hello. I think he was only looking for some chocolate, but, as is often the case when two traders get together, the conversation turned to the market.

It turns out we were both trading the S&P Financial Select SPDR (XLF) put options. (Just a reminder: Puts are instruments that benefit the buyer when the stock, or, in this case, the ETF, drops in value.)

Now the odd thing is that Karim was selling the XLF puts and I was buying them. He was betting that the XLF would remain above the 20 level. So he was making money by collecting the premiums and letting the puts expire worthless.

I was buying the April 28 puts, which meant that I made money when the XLF fell from $27.50 to $24.50.

Two totally different approaches to trading the XLF puts. But we were both making money.

I prefer buying options to selling options. When you buy an option, the worst that can happen is you’ll lose 100 percent of what you paid for it. Meanwhile, your upside is unlimited. When you sell an option, your gain is maximized then and there. But your downside is unlimited. Given the choice, I’d rather maximize the upside and minimize the downside of any trade I make.

That is the name of the game when it comes to trading. There are many ways to trade. There are many ways to make money in the market. The key is to find the type of trading that works best for you.

For example an exchange rate of 102 Japanese yen (JPY, ¥) to the United States dollar (USD, $) means that JPY 102 is worth the same as USD 1.

The foreign exchange market is one of the largest markets in the world. By some estimates, about 2 trillion USD worth of currency changes hands every day.

The spot exchange rate refers to the current exchange rate.

The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.

We do believe however in the fact that you should have all the information you need about all kinds of investments and so we have included this category of investment in our website.

Forex allows you to achieve very high returns and at the same time you can lose a lot of money so any investment like this should only be entered into after consultation with your wealth coach to determine how it may affect your long term financial plans.

The information provided here has been produced thanks to our affiliation with Forex affiliate.

Forex? What is it, anyway?

The market
The currency trading (FOREX) market is the biggest and fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars. The participants in this market are banks, organizations, investors and private individuals, just like you. (click here to read full market background by Easy-Forex™).

The goods (merchandise)
Markets are places to trade goods, and the same goes with FOREX. The Forex goods are the currencies of various countries. You buy Euro, paying with US dollars, or you sell Japanese Yens for Canadian dollars. That’s all.

How does one profit in Forex?
Obviously, buy cheap and sell for more! The profit potential comes from the fluctuations (changes) in the currency exchange market.
The nice thing about the FOREX market, is that regular daily fluctuations, say – around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200).

How risky is Forex trading?
You cannot lose more than your “margin” (your initial investment)! You may profit unlimited amounts, but you never lose more than what you initially risked. However, risk only what you can afford and is not vital for your well-being.

How do I start trading?
Register (Easy-Forex™ offers the simplest and quickest registration process, no obligation); deposit your first trading “margin” amount (credit cards are welcome, only by Easy-Forex™); start trading.

How do I monitor my Forex trading?
Online, from anywhere, anytime. You have full control to monitor status, check scenarios, change some terms in the deal, or close it.

Want to know more? Want to get on-line training? Register here (quick, no obligation), we’ll be glad to guide you, every step of the way.

Good luck!

Forex trading involves substantial risk of loss, and may not be suitable for everyone.