Do You Know Where HYIPs Get Funds to Pay Investors?

Dec 12

Do You Know Where HYIPs Get Funds to Pay Investors?

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HYIPS invests in FOREX. Yes, almost 90% of HYIPs owners or admins are investing in FOREX to pay their investors. What about if they lose? Well, take a look of the following…

HYIPs claim to make money through various methods including offline and online investments. The most popular and common way they used to make profits is online FOREX trading.

HYIPs pretend that they can make huge amount of money monthly using their own trading strategy or hiring a professional FOREX trader. FOREX, which is an acronym for foreign currency exchange, is as simple as exchanging a currency against another. Even if you are a novice, you have probably been involved in the FOREX front if you already have exchanged money in a foreign currency when you’ve took a trip in other country. The FOREX trading is at its most basic level and concentrated FOREX trading is when you invest money to make money on the exchange of currencies. With over $1.5 trillion (USD) changing hands daily, it might be advantageous for investors to investigate the extremely lucrative business opportunity involving currency trading.

In FOREX or financial institutions there is something called margin financing. Margin financing offers investors a way to use a small sum of money to control a large sum of money in the market. Example, by investing in foreign currencies, with a $1,000 deposit margin investors can control as much as $100,000 worth of foreign currency.

Let’s take an example to show you how FOREX traders can make money using margin financing:

An investor that purchase 100,000 EURO to the EUR / USD exchange rate of 1.18. Meaning, it is controlling $118,000 with only $1000 security/margin deposits. After some time, the exchange rate between the ‘EUR / USD is 1.2500. If the Investor sells his holding, it means that he should return $125000. Thus, the difference is $7000 will be pocketed by investor. It’s almost 600% back! So now, let’s take a step further, if the investors have $100,000 margin deposits, investors could effectively control a whooping $10000000 value foreign exchange! So how this is going to get investors to $100000? Through others’ people money. If the owners can find other investors to put their money to get this Owners can get a higher margin he or she actually could more control and equity $7000 profit from the example above can be effectively $70000 or $700000 depending on the amount pooled. If they lost it’s the other way around…HYIP will then disappear or they will close its operation without paying or saying anything to their investors…and we call it SCAM!