Foreign currency is the name given to foreign currencies . Our country’s foreign shopping and all the trade carried out, the currency of the country where the trade is carried out in foreign currency. In this case, profit and loss ratios are determined in these trades due to exchange rate changes. In other words, there is a possibility of harm. However, we will focus on the investment and profit segments of this situation. Moreover, foreign exchange, as an investment method is very often preferred. So how to make foreign currency investment?
These transactions, which used to be carried out in foreign exchange offices, entered our mobile phones with technological developments. Without going to any foreign exchange office, we are able to carry out our foreign exchange transactions directly through internet banking. It is certain that your chances of being scammed are really very low in the foreign exchange transactions you will make through the official applications of our Bank. We recommend that you do not trade from different and unfamiliar sites and applications.
What is Currency?
Briefly, Foreign Currency is the name given to the currencies used outside our country. This is the most accurate and simplest description. In general, instruments that can be converted into cash are counted as foreign currency. These instruments; insurance policies, checks, stocks, bonds, and bills.
How to make foreign currency investment?
Foreign Exchange Investment is carried out in parities over the currencies. Currencies around the world; major , minor and exotic liquid according to the increase in three different groups are examined. The currencies of US dollars, Euro, British pound, Japanese yen, Australian dollar, Canadian dollar and Swiss franc are major currencies as they are used in both commercial and investment activities. Other than these units are minor and exotic units. TL, which is used in our country, is traded in parities which are in the minor group and are generally formed with major currencies.
The concept of parity
It is the equivalent of two different currency units. For example, in USD / TRY parity, the value of the US dollar to the Turkish lira is questioned; The USD equivalent of TL is calculated in TRY / USD currency pair. Generally, the major units are taken into consideration in determining the prices. For this reason, the key point that foreign exchange investors should pay attention to are the situations that affect the currency in the parity. This is because profit or loss is caused as a result of changes and fluctuations in exchange rates. In order to take the right steps, we need to anticipate future price changes.
For these reasons , you should know the foreign currency you will invest and most importantly, you should follow it well. You should follow the current events and developments in your country and analyze whether these will be reflected in the money markets .