How do you profit by changing the dollar into other currency.?

how do you profit by changing the dollar into the euro for example.Where is the profit in that if the dollars worth is low but the euro is high im sorry i just dont understand.How do you profit by changing the dollar into other currency.?It works like this. At one time the dollar was actually worth more than the Euro, then George Bush was elected. Since then the value of the dollar has been dropping like a rock against the Euro. Now it is worth 0.65 Euros. So if you had on election day back in 2000 converted $100,000 into Euros you would today be able to convert back into $s and receive over $150,000 for your Euros. But that is not the way the real money is made. The real money is made using leverage. The margin requirement on a Forex account is 2%. That means that you can buy $100,000 Euros for only about $2,000 in margin. If the Euro goes up in price against the dollar which it has been doing for the past 7 years, then your $2000 investment returns $50,000. Not too bad. If on the other hand the Euro drops in value against the dollar just a little your account is wiped out.



It actually can get even much better than that. You can pyramid your holdings. That means that as the $ drops and your Euros become more valuable you can then use the equity in your account to buy more Euros at a 2% margin. So instead of making only $50,000 you could possibly make $500,000. This is very very risky though and I do not recommend it.
How do you profit by changing the dollar into other currency.?
That's just it!! Right now, you wouldn't trade the dollar for a euro or pretty much anything else right now because the dollar has been dropping in value. Gold and silver are good investments right now as are stocks that deal in e-85 because as the price of gas goes up, it makes E-85 more profitable to develop. For more information on investing, watch %26quot;Mad Money%26quot; on CNBC Mon-Fri at 6 %26amp; 11 pm.
How do you profit by changing the dollar into other currency.?
That's half of it. You profit by changing the dollar into Euros (for example) and then later changing them back at a better rate.
You don't profit any more than you profit by changing your dollar bill into 4 quarters.



Some people believe they can make money by trading foreign currencies, that is by buying and selling like you might with stocks. In truth, it's not profitable. Expenses including commissions and the width of the bid/ask spread eat up any potential profit.
Let say if you change you $1,000 into Euro today. It will be 651.979 EUR as of today.

In the future, if the dollar keeps dropping compare to EUR, you will make profit out of it by changing back your holding into dollar at a better rate.

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