how is one currency more powerful than another? If you exchange $100 to 102 francs don’t you still have $100 but in francs?
In: 53
On the immediate term, the value is the same. If the value changes over time, that differential is where you either lose or gain.
If 1 Potato is worth 1 Banana on Monday, and you trade in 100 potatoes, you have 100 bananas
But, then if the value changes and suddenly 1 potato is worth 1.5 bananas, you still have 100 bananas, but they are now worth 67 potatoes. You do not lose “money” until you trade back to potatoes.
I used to program FOREX EAs as a side hobby. I made a ridiculous amount of money by scalping day to day value fluctuations. I also lost a ridiculous amount of money by scalping day to day value fluctuations. After 6 months, I netted about $200 gain. At one period of time, I had over $200k in gain, and my little trading bot decided to crap the bed at 1AM when our ISP had a momentary outage. When I woke up at 5am, the EAs weren’t running and the last places from around 11pm (with leverage) were tanking and there was nothing to stop them. It was a very sad day. After that, I pulled everything and told my wife “hey, I made enough to take us out to a fancy dinner!” Haven’t touched it since.
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