Make money from a weak pound?

I was in the pub last night and the topic of the weak pound came up.  We were planning on going for a European cycling trip.  With the weak pound though, everything is going to be expensive.  I was in Amsterdam in September 2008.  I was paying 5 Euros for a pint of Heiniken.  At the time that was about £4.  Expensive but I could stomach that.  Now thats about £5, I am thinking that its not worth it.

The question came up, should my friend change all his savings to Euros?  From my GCSE economics I remember that 2 main things affect the value of a currency.  Interest rates and the demand for that countries goods and services.  Interest rates are low and are likely to go lower.  So no value is going to come from that.  I can’t think what the UK produces that can’t be brought abroad in a different currency.  If an alien came to earth, why would they buy any streling pounds?

So I am thinking that the pound is screwed.  So how am I going to make from a week pound?  I was looking at betting on the Forex..

I found this site where you can bet on it. No messing around with changing currency you just bet and take any profit. See the guide below.

About Forex

The Forex market has quickly become the world’s largest financial market, with an estimate daily turnover of $3.2 trillion. It is a market that has great appeal to a financial trader because of its volume which guarantees liquidity. High liquidity means that a trader can trade whatever currencies he feels like at all times, since there will always be someone to buy and sell any currency he wants. Another outstanding feature of the forex market is that it is active 24 hours a day and is closed only on the weekends. This means that unlike the stock market for example, traders in the forex market don’t need to wait for a bell to ring, but can make trading decisions around the clock.

Enter the internet into the equation. Now the forex market is literally at your fingertips. Most brokers offer online trading facilities which enable you to trade simply by clicking a button, instead of the traditional phone call. The internet has really revolutionized the industry, making the retail section of the market more dominant than ever.

About eToro

eToro is a forex trading platform developed to cater to the emerging retail segment of the forex market. With its simple style and exciting trade visualizations, eToro is the perfect platform for a novice trader to get his first forex trading experience. With its great array of professional forex trading and analysis tools, eToro is also the perfect platform for experts in the field who want to trade comfortably and reliably. eToro has developed a truly intuitive interface that lets traders concentrate on trading instead of messing around with bulky and overcomplicated software.

It’s important to mention that eToro also offers an educational experience, so novices can gain knowledge of the forex market and eventually become pros if they’re so inclined. eToro offers forex trading guides, forums and video tutorials to facilitate their traders’ progress. eToro also offers an unlimited practice mode where both beginner and seasoned traders can sharpen their skills and test their strategies with real market rates.

Overall eToro have successfully designed a software that caters to a very wide segment of the forex trading public. eToro is bound to remain a leader in the forex industry for a long time to come.

eToro’s features:

Visual representation of trades: Monitor your trades with ease by watching creative visualizations of your trading activity.

Practice mode: Test your skills and strategies by trading with live rates, without risking a cent.

Trading Challenges: Compete against fellow traders for cash prizes – with no entry fees.

Trade: Enjoy immediate and accurate execution with all your trades.

Low Spreads: Save a fortune on eToros super low spreads – as low as 2 pips.

Bugger knows what 2 pips is but I will find out. I guess I’ll try with a small amount and see how I get on. Etoro Website

One Response to “Make money from a weak pound?”

  1. Bob Says:

    I agree, the pound is screwed. Should have joined the Euro when we had the chance.

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