Income vs Earnings in Forex Trading: An Academic Perspective
Income is what an individual receives in exchange for his/her labor or services provided, while earnings are profits that individuals gain from their investments, such as stocks, bonds, real estate, and Forex trading. Income is usually predefined and limited to the wage or salary received, while earnings can be variable and potentially unlimited. Forex trading involves buying and selling foreign currency to make a profit on price movements. Leverage is available, which makes it possible to make a larger return on a small investment than from most other investments, but there is also high risk involved, not only of losing the invested capital but also of having large losses due to adverse exchange rate movements.