Step 1: Borrow Cheap Money
You borrow a bunch of money from a friend who lives in a country called ‘Low-Interest Land’ because it’s so cheap to do so.
Step 2: Invest in ‘High-Interest Land’
You invest that cheap money in another country called ‘High Interest Land’ where you can earn a much higher interest rate.
Step 3: Make a Profit (if you are lucky)
If all goes well, you’ll earn more money from your investment in ‘High-Interest Land’ than you have to pay back your friend in ‘Low-Interest Land’. That’s your profit!
But here’s the catch
If the value of the money in ‘Low-Interest Land’ suddenly goes up, or if your investment in ‘High-Interest Land’ goes bad, you could lose money. So, while it sounds as easy as 1-2-3, it’s actually a risky strategy.
If you want to increase your market knowledge and confidence, please keep reading …
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