Super Fitness Health BlogIntro to Forex currency markets
The Foreign Exchange market is a very liquid market for traders and an indispensable tool for businesses and individuals doing business in other nations. Through experienced foreign currency exchange trading, market participants can amass large profits in speculative portfolios or hedge business dealings in foreign currencies.
So, what in the world is Forex?
The Forex market, unlike other stock or commodity markets, is decentralized and based on a computerized and telephone network of banks and brokers around the world. Forex operates around the clock from Sunday 5:00 PM ET to Friday night. Trading opens in Syndey and moves around the world to Tokyo, London, and New York. Trades in the most popular currency pairs are typically extremely liquid. When global macroeconomic news happens, the currency market is there to adjust.
Leveraged Forex Trading
Forex Currency Trading is a leveraged method of trading. Leverage can work in the favor of the trad
er in that you don’t need a lot of capital to begin trading large sums of money. However, with that leverage comes substantial risk; it is possible in some types of Forex trading accounts to lose more than the amount you placed in your trading account.
Currency Trading Risk Control
For traders who use highly leveraged trading vehicles like currencies, it is critically important to develop a clear strategy for risk control to avoid catastrophic loss of capital. This is because tiny movements in currency values, down to five decimal places or more, can be leveraged into profits of much larger dollar amounts. However, this can only happen consistently by limiting position size and using stops.
Open a Forex Trading Account
It is possible to open a currency trading account for as little as $250, however most experts suggest that you deposit a much larger amount than that to make leverage easier to manage. There are some popular Forex currency trading firms that have good trading platforms.
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