When governments make their contracts of the structure like roads and buildings they act like other actors. Almost every budget in the building industry is calculated a little bit over the real costs, because of the unexpected catastrophes or disturbing the production. There is calculated the loss of building material, what can be replaced with new elements, and if the accident happens in the building site, would that replacement pay the contractor.
But if there are no accidents, the money what is reserved for those replacements would leave to the bank accounts. Also, another reserve is made for repairings, but if there is no need for that the money would not be used. This would grow the money in the accounts, what are called the overbudgeting.
The governments are working like big companies in this area, and one of the things, where that money is used is the financial buffer, what makes possible to make fast investments in the short period. This buffer is so-called "free money", and it is not connected to any special projects or other things. Why I'm writing about governments and corporations like mixing those things? The reason is that money buffers work basically the same way, are they governmental or private sector money.
There is no difference between an actor in this case. And when we are thinking about the multinational corporations, we are facing the truth, that those corporations have very much money in their buffers. And if they want, they can use it in the thing, called currency investment. In this case, the investor would follow the value of currencies and then sell or change the money for another currency.
Simply the way to explain, how this thing happens is to buy some currency, and then the value of the currency is rising that actor can sell that money for the better price. But normal way to use this methodology is to use the multiple currencies, what can give short period incoming and winnings for the investor. And if the investor would have billions of dollars in use, even the small change of the value of the currency would give big profits for that person.
This requires the ability to follow the courses of currencies all the time, but the Internet would give the possibility for that. The change of the currencies value can easily to follow by using the Internet. This way to use currency as the merchandise can also cause the changes in the value of currencies. When somebody would buy money for billions of dollars, that will cause the raise if this targeted currency, and this is the way, where the investor would manipulate the value of the currency.
If that would be translated into the normal language, that kind of investor cannot make losses, and in this kind of actions can this person use weak currencies. First, this actor would buy the weak currency by using dollars or euros, and this investor would use billions of units of money. And then this targeted currency would get more value. After that, the actor would just buy euros, dollars or yen, and then gets very much profit from that action. This causes, of course, the inflation in the weak currencies, but in this case, the thing would not mean.
The reason why this kind of currency trader would choose weak currencies is that in this game would the thing, what makes profits is percents. If that investor can pull the currency up many percents, that person would get more profits. And if this tradesman would sell the currency or exchange it in the very short period of the time, would that give very good benefits. In the modern world, the computers can use to build the networks, where the sum would transfer by using many currencies, and that will maximize that profit.
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