As a Forex trader you will always be attempting to make more
profits than losses from the fluctuations of exchange rates
between currencies in the forex market; in short, this is what
is called forex trading. The good news is that nobody is going
to ask you for a diploma, or somehow verify the amount of hours
you've spent studying the foreign exchange market (FOREX). All
you need is the proper training and the tools that will help you
become a profitable trader. But this is not the only advantage
you get when trading forex, compared to other ways of investment
and speculation as stocks. You have a other great advantages
that will make you decide for forex and forget about stocks and
commodities. 1): There will Never be a Bear Market in FOREX.
You can have access to a mutually-inclusive (two-way) exchange
of world currencies. In other words; currencies trade in
"pairs"(for example, US dollar vs. yen or US dollar vs. Euro),
one side of every currency pair is constantly moving (up or
down) in relation to the other one. Thus, when you buy a
particular currency, you are actually simultaneously selling the
other currency in that particular pair. As the market moves, one
of the currencies will increase in value while the other will
decrease proportionally. It is up to you to choose the correct
currency to be long or short. Since currency trading always
involves buying one currency and selling another, it all means
that you have equal potential for profits in both a rising or
2): Trade with High Leverage - up to 200:1 Leverage.
Every trader participating in the forex market is allowed to
trade foreign currencies on a high leverage basis - up to 200
times your investment with some brokers. This is primarily
attributed to the higher levels of
liquidity within the currency
markets. Standard 100,000-unit currency lots can be traded with
as little as 1% margin, or $1,000, which is a pretty nice
feature of forex. Mini Forex accounts are permitted to trade
with just 0.5% margin -- in other words, just $50 allows you to
control a 10,000-unit currency position. Futures traders, who
are asked for margin requirements generally equal to 5%-8% of
the total contract value, will immediately appreciate that the
FOREX market provides much greater leverage; and stock traders,
who must post at least 50% margin, may think they are dreaming.
3): Most Price Movements Are Highly Predictable.
Many times currency prices in the forex market may be volatile,
but they have the great advantage that generally repeat
themselves in relatively predictable cycles, creating trends.
The strong trends that foreign currencies develop are a
significant advantage for traders who use the "technical"
methods and strategies.
Unlike stocks that sometimes seem to simple lay down in narrow
price alleys, currencies rarely spend much time in tight trading
ranges and have the tendency to develop strong trends. It is
known that over 80% of the trading volume in forex is
speculative in nature and, as a result, the market frequently
overshoots and then corrects itself. As a technically-trained
trader, you can easily identify new trends and breakouts, which
provide for multiple opportunities to enter and exit trading
About the author:
Adrian Pablo is a freelance writer with articles published in a
number of places. Get a free report onFibonacci Tradingand learn
more about the world of trading , visit the website: http://www.1-forex.com
A Look at Online Forex Brokers
An online forex broker is a firm that facilitates retail trading using Internet technologies. Global Forex Trading (GFT), one of the popular online forex brokers. It provides retail traders with a free demo trading account, allows users to open a...
Forex Brokers - Helping to Maximize Your Success
Forex Brokers—Your Ultimate Partners In Success A Forex broker is a broker dealing in foreign exchange, just like real estate broker who deals in real estate and properties. Simply, a Forex broker is an advisor who advises you about the forex...
Internet Marketing VS Forex Currency Trading
Have you noticed that when someone’s trying to sell you something - such as a system for making money - they always make it look far easier than it is?
Let’s look at two Internet businesses, almost as diametrically opposed as it’s possible to be...
Introduction to Bollinger Bands; A Great Help In FOREX Trading.
Forex trading has become one of the most looked after occupation
for many persons around the world. This is due to its great
advantages over other capital markets and its high potential
profitability; among these advantages we can find its...
Trends and Profitable Trading In The Forex Markets.
The basis behind using technical analysis is to find trends when looking at the forex charts and be aware of when they first develop so you can ride the trend until it ends. The foreign exchange market is a very strong trending market, lots of ups...
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.
** The Views and opinions represented in the provided website links and resources are not controlled by the Referring Broker or the FCM. Further, the Referring Broker and the FCM are not responsible for their availability, content, or delivery of services.