6. FOREX VS. other investments Low N/A Average High Variable Long term Not Required High Own Business High Average Average High Offer / Demand High Liquidity High Average Low High N/A N/A Transparency Good Good Average/Low Average Average Does not exist Risk control Controlled Controlled Variable / High Variable Variable Low Risk High Medium Depends on company Variable Low Low Yield Short / Long Short / Long Short / Long Medium / Long Long Term Variable Time scale Flexible Flexible Fixed Not R equired Not required Not required Required margin Low Low High High High Low/High Required capital Forex Market Commodities Stocks Bonds Real Estate Banks Instrument O f I nvestment
7. FOREX VS. other investments High Liquidity High Transparency Good Risk control Controlled Risk High Yield Short / Long Time scale Flexible Required margin Low Required capital F orex Market Instrument O f I nvestment
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10. Profit from buying and selling PRICE Buy here Sell here PROFIT PRICE TIME Buy here TIME Sell here In the Foreign Exchange, the product is a CURRENCY PAIR PROFIT
11. Example of a trade (USD/JPY) Sell new: 114.50 Buy close: 113.50 PROFIT (114.50-113.50)x200.000 -15.000= 185.000 ¥ PROFIT 1 lot of ¥ 200.000, and ¥ 15,000 fee per lot
12. Forex Compared to Savings Accounts EURJPY (2006/05/09 ~ 2007/05/09) 22 Yen increase in one year (2,200 points) FX Foreign Exchange Bank Account Regular Bank Savings Account (0.5% interest)