Investment at forex trading
Simply put, investing is a form of assets with the hope to benefit in the future. In other words, investing is purchasing or production of capital that are not drafted, but are used for the future to make a profit. The easiest example is land investment. Ie by buying land, then sell them on the future when land prices higher and take the profit.
Investment is basically divided into two, namely investment real assets and financial assets. Examples about land investment above, are examples of real asset investments. Examples of other investment real asset is gold, apartments, and many others. Meanwhile, investment in financial assets is investment money in the financial sector, for example shares, bonds, mutual funds, forex, insurance, and so forth.
From the discussion above, it can be concluded that forex trading is one of the investment in the financial sector. Forex investment has advantages over the real sector investment or from another non real sector.
Advantages compared forex trading with real sector investment, which is quite easily seen from the large capital. For example if we buy land, at least we need a big enough money to buy land. Because land can not be bought only one or two meters wide. We must buy in vast quantities, this of course requires substantial capital to invest. While in the forex trading, today there are the forex brokers that allow trading only with a very minimal capital.
With the advancement of technology, makes forex trading has more advantages compared with other types of investment. Among them are required relatively little capital, high liquidity, and convenience ease of the other. According to experts, the velocity of money that happens in forex trading, can reach $ 1.4 trillion per day.
Investment that made in the real sector, if want to reach the break even point will take a long time. For example if we invest our money to buy land, we will take months or years to gain profit. We are selling it at a later date, when land prices rise. While in the forex trading is not the case. Forex traders can benefit 10% of their invested capital, in just minutes. Even if a player forex already professional, the value of their portfolio could increase by 100% or more in just one month period. The amount is of course very large in an investment.