Hold onto the foreign currency and track the changes in exchange rates over time. To make money on this investment the investor will have to sell back the euros when their value appreciates relative to the u s.
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If it does you make a profit.
How to make money on exchange rates. Spot trading often. Currencies always trade in pairs. You buy one currency in conjunction with another in hopes the exchange rate moves in your favor.
Currency trading can be done in the spot market or on the futures exchanges. For instance let s assume the value of the euro. Go back to the bank and trade the foreign currency back into the original currency.
Making money with currency exchange rates small changes big bucks. Minus any exchange costs. Exchange rates change in very small increments under most economic conditions.
Study the structure of the currency market. If the foreign currency has increased in value relative to the home currency during the time you held onto it you will make money.
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