What is FOREX?

what is Forex

FOREX (Foreign Exchange) is a financial product that brings in profits from buying and selling foreign currencies between two countries on the internet such as US Dollar or Euro.

FOREX is a tool that helps people over the age of 20 with capital of only $5 and above, anyone can easily invest, can make a profit from tens to hundreds times as much as the initial investment in a short time.

No need for high level FOREX knowledge

forex trading

For example, can trade only with one of the two options “Buy" or “Sell" EUR/USD.

After a few minutes, several weeks, if you expect the dollar to appreciate, buy USD.

In the example of the EUR/USD pair above, if the USD appreciates, the EUR will decrease so “sell EUR/USD".

How to make profit?

FOREX has 2 two main ways to make profit.

Method of earning foreign exchange difference of two currency(Simple way of earning money)

How to make money

Firstly, the method of earning foreign exchange difference of two exchange rates through currency trading of two countries.

For example, Buy EUR at 1 EUR = $1, selling when 1 EUR = $1.1.

By “buying low, selling high”you will make a profit of $0.1 (2,300 VND).

※Exchange rate of May 2016.

How to make a profit by the interest rate difference of currency pairs

How to make a profit by the interest rate difference of currency pairs

One way to do this is to make a profit using the Swap Point.

You may get interest spread arising from “sell low interest rates, buy high interest rates” .

For example, in the case of AUD/USD, for the Australian interest rate of 2%, the US interest rate is 0.5%, so a difference of 1.5% is generated.

In the case of “Buy AUD/USD", within the limit, continuing to buy and hold AUD means that every day your account automatically gains 1.5% (Swap Point).

However, conversely, in the case of “Sell AUD/USD", you must pay interest (Swap Point).

(Depending on the FOREX trading company, interest payments will vary.)

The advantage is that large investment can be made with only a small amount of initial capital

FOREX is a mechanism called “Leverage”capable of large trading volume with small capital.

For example, if your leverage is 500 times, even though you have only $ 1 in your hand, you can make a large investment 500 times greater, meaning $ 500.

trading large volume with a small capital

Single interest will also be 500 times greater

For example, if you buy EUR when 1EUR=1$ and sell 1 EUR=1.1$ then the spread is 1 EUR=0.1$ (2,300VND) but if you only buy 1 EUR for 1$ the spread will be only 0.1$.

If you buy EUR with leverage 500:1 or 500EUR, simililarly if you sell at $ 1.1, the profit will be $ 0.100 × 500 = $ 50.

In this example the investment is only EUR 1, but if it is traded with leverage of 500:1 with a capital of EUR 1,000, the leverage 500:1 will generate 1000 times a profit of $ 50 to $ 50.000.

This dream transaction is actually real. It is FOREX financial products that investors, banks, hedge funds around the world are investing in.

FOREX trading hours?

 FOREX trading hours

FOREX trading hours, trading any time within 24 hours a day

If you are connected to internet, even if you don’t have a computer, you could easily trade and invest using smartphone.

In New York time, basically you can trade any time you like during 24 hours from 01:00 pm – 10:00 pm GMT.

Forex market is traded around the world. Especially between the opening of the London markets at 08:00 GMT and the closing of the US markets at 22:00 GMT is when London and New York market time zone overlap, foreign exchange market is open and exchange rates show large movement.

During those hours of high fluctuation, the chance of making a large profit is also higher.


This transaction also creates opportunities for office workers or even housewives, so it is increasingly popular as a side job.

Of course, when you become a real investor, you’ll have more money in hand

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