Foreign Currency Exchange trading in an IVA
Whilst it is true to say that the financial world revolves around global stock markets and Foreign Currency Exchanges, such as the FOREX, when it comes to trying to recover bad debt, creditors tend to see FOREX trading as little more than speculative gambling.
And due to the fact that the FOREX will always produce 'winners and losers' it's hard to argue against that point of view.
When entering into an IVA, you'll be required to give a commitment to your creditors that FOREX trading will be ceased, until the IVA has completed successfully.
Under the terms of the IVA, your creditors will be expected to offer you debt forgiveness if you have been unable to repay all of your original debt.
They will, therefore, expect you to try and repay as much of your original debt as possible through the IVA, to minimise the amount of debt forgiveness they'll need to give.
The only way they can do that is by insisting you repay as much as possible each month to the IVA, once your living costs have been taken into account.
With this in mind, they will task your Insolvency Practitioner with ensuring you refrain from any activity which could be considered speculative, and trading on the FOREX will be one such activity.
Therefore you should only consider entering into an IVA if you are absolutely sure you have ceased trading and are in control of the urge to do so.
Trading on any level can be addictive, and the will power needed to stop trading on FOREX should not be underestimated.
If you are struggling to resist the temptation to trade whilst in an IVA, you should seek professional help or discuss it with your Insolvency Practitioner.
Trading with Foreign Currency Exchanges (FOREX)
The constant fluctuation in the value of foreign currencies and their relative values to each other creates a trading market for speculators.
For those with the ability to anticipate correctly the future value of one currency against another there exists an ideal opportunity to make serious money.
Buying a currency when its exchange value is low to then sell at a later time when the exchange value is high is all it takes to make a profit.
Sounds so easy to do, simply buy low and sell high.
The problem is, there's no scientific way of knowing exactly which way the exchange rates will go from one moment to the next.
So, in order to stand a chance of making a profit through FOREX trading a decent level experience is needed, along with an understanding of the global pressures at work between the currencies and above all, of course, a degree of luck.
Serious money can be won or lost in a matter of moments.
But, just like in gambling, when it goes wrong there can be an overwhelming urge to chase after the losses, which can be disastrous. Many people have made their fortune through playing the currency markets successfully, but many more have been left ruined trying.
Applying for an IVA
If you would like to make an enquiry into how an IVA may help you deal with a debt problem, then call our helpline on 0800 856 8569.
