Simply put, investment is defined as the activity of investing capital. Thus, any economic activity that requires capital is considered an investment. Investment is passive. That is, you as an investor does not run the business directly to gain profit because there are already other parties who manage the money. And you just stay enjoy the benefits (did not rule out the possibility of loss) only. This is necessary to be known by the new investors who are still using their forex demo account.

Advantages and Disadvantages of Investment

When saving money in the bank, you can be said as an investor. Your savings money is used by the bank to run business activities. The advantage of being an investor is to earn profits in the form of interest without the need to go into business. Investment is the right choice for you who have other main activities.

While the lack of investment is you can not control or determine the target profit you want to get in a certain period. It could be that your profit is significant and could be your worst chance of suffering losses. It all depends on the managers and the level of profitability of the company.