Different Ways to Trade Forex Currencies

Global Forex market offers great flexibility to traders and suits different trading styles. Here are 4 different ways to trade Forex currencies.

Currency carry trades: Forex carry trading is a popular Forex trading strategy which aims at profiting from the difference in interest rate between two currencies like NZD/JPY. The trader buys high-interest rate currency spending low-interest rate currency and maximizes any profit chance by using high leverage and high position size.
Political trades: political factors like elections, political stability/instability, agreements/disagreements between countries, all these can trigger price changes to the related currencies. There are many Forex traders who search for these types of opportunities and position themselves according to the news.
Economic trades: world economies are closely related to one another. Many traders use economic disparities as a profitable opportunity. For example, traders can buy currencies of countries with strong fundamentals like better unemployment rate, GDP growth, and retail sales rate, spending those of countries with not-so-good fundamentals. One other example is profiting from the ever-changing oil and gas prices.
Volatility trades: There are many currency pairs like GBP/JPY which are fairly volatile to offer some pretty good intra/inter-day trading opportunities. In order to profit from these opportunities, traders should be thorough in their decision making and technical analysis.