How High Yield Investment Programs Work 

HYIP stands for high yield investment program, and this is an investment scheme designed to deliver vast profits from investments. It is said to be one of the most lucrative money-making ventures around, and investors can make earnings of as much 20 to 2000 percent in interest a month. As is the case with any speculative venture, the profits an investor can make are dependent on the risks they make. That is, the greater the risk, the greater the returns, or losses for that matter.Most HYIPs do not disclose to their investors exactly how they invest the money that they put in. However, in general, HYIPs engage in capital management which is, simply put, handling an investor’s total investment, as well as capital expenditures needed to make the venture grow. This makes for additional capital outlay. Examples of modes by which HYIPs exercise capital management are FOREX trading, stock exchange, sports betting, metal trading, and the like.

FOREX stands for foreign exchange, and it basically involves the buying and selling of currencies. Among all the markets in the world, FOREX is said to be the market with the most volume, with an approximated daily turnover of over US$ 3.5 trillion. In FOREX, the base currency against which other currencies are traded is the US dollar. It is said to be the most liquid market, which means that an investor can take out or cash in investments more rapidly and with a fairer market price compared to other markets. Also, it is non-monopolistic, mainly because its huge volume prevents any single entity from controlling and monopolizing it. Moreover, trading in FOREX takes place 24 hours a day, 5 days a week, allowing an investor to benefit from developments worldwide while the local market sleeps. Because currency markets are extremely speculative and highly unpredictable, FOREX and currency markets in general are an enormously lucrative and attractive money-making venture. With all that said, a lot of HYIPs therefore bank on the highly profitable and money-spinning nature of FOREX to generate tremendous returns for their investors.

Another means by which HYIPs invest their investors’ money would be the stock exchange, or the stock market. It is a structured and organized market where members trade securities such as stocks, common stock equivalents and bonds. Members can act as agents, known as brokers, or as principals, known as dealers or traders. There are various ways by which trading in the stock exchange is carried out. It may be conducted on a continuous auction basis, or it may be done through specialists who focus on a particular stock. Also, it may be carried out through brokers who buy from and sell to dealers or traders in specific types of stock.

Sports betting, or sports gambling, is still another venture which HYIPs get into to capitalize on and increase yields for their investors. In sports betting, participants make a wager based on particular outcomes or predicted results in sports activities. Wagers are accepted by so-called bookmakers, or those who specialize in receiving sports wagers. The specific mechanics, legality and general acceptance of this venture differs depending on the country. For example, in North America, horse racing is generally the only sport where sports betting is allowed. On the contrary, in many countries in Europe, sports betting, although not illegal, is extremely controlled and regulated.

Metal trading, on the other hand, simply refers to the gold and silver markets. Other precious metals exchanged in this market include platinum and palladium.

HYIPs conduct their activities and transactions on the internet, through virtual currencies or e-currencies. These have allowed HYIPs to conduct business worldwide, and have made it very convenient for investors to claim earnings instantly. They also enable HYIPs to accept large numbers of small investments. Starting off with an HYIP online is simple, since all you have to do is register with them and then deposit some money into your HYIP account using the payment processor that they outline. The profits are paid out to the same processor to streamline the process.