The foreign exchange market, also knows as FOREX, originated in
1973 has become the largest e-currency trade market in the world
today. FOREX trading occurs 24 hours a day, 5 days a week. The
FOREX market offers a unique trading opportunity to those
seeking a substantial profit in a market that trades over 1.2
trillion dollars each day.
FOREX market is primarily traded between central banks,
commercial banks, non-banking International Corporation, hedge
funds, private investors and speculators. Previously small
investors were unable to trade in the FOREX market due to the
large deposit required. However until recent years, with the
continuing growth of the internet and competition, FOREX trading
has made it so small investors can now open a FOREX trading
account with as little as $250.
There are a few factors as to why FOREX investing is starting to
attract more small investors. For one, FOREX can be traded 24
hours a day 5 days a week. Previously trades were placed by
phone, the internet has made it possible for traders to monitor
their FOREX trading accounts from home and execute trades in
real time with the click of a mouse button.
In order to start trading in the FOREX market, one must first
open an account with a broker. It is recommended to obtain a
list of brokers and do some research before deciding on which
broker to deal
with. Each broker offers different policies and
different spreads on each currency that is traded.
Before trading in FOREX, one must first understand the risk and
reward behind margin trading in FOREX. A margined account can be
leveraged, which means trading in FOREX can be done with solely
cash or a combination of cash and collateral such as a security
deposit. The main risk involved in margin trading is that margin
trading tends to inflate loss. In addition the rate of loss and
leverage makes FOREX a high risk investment. However, regardless
of the downside in margin trading, FOREX is still very
profitable as huge gains can be made.
There are plenty of resources on the internet that will discuss
trading strategies, emotions and what it takes to become a
successful trader. Most of these web sites are going to tell you
that emotions play the largest roll in your success as a trader.
Any experienced trader will tell you that trading is a
psychological game and usually the people who go against the
crowd are the ones that end up making the money. When you decide
to get started in the FOREX market be sure to look at multiple
resources and decide on which broker will be the best for you.
About the author:
Tim Rohrer is an established publisher and has been trading in
the forex market for 2 years. To learn more about the forex
market visit http://www.forex-investing.us
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Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest / trade in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading.
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