الأربعاء، سبتمبر 16، 2009

The Pros And Cons Of Trading Forex

There is not other financial market which compares to the foreign
exchange currencies market. Trading Forex can be done around the clock
all year long, including weekends. Because of its uninterrupted
accessibility, trading the Forex market has made the exchange of
currencies the largest money making opportunity in the world.
Even without its uninterrupted accessibility, trading the Forex would
still be the most user-friendly investment around. Its generous
leverage conditions, which run as high as 100:1, allow even the
smallest investors to control a considerable amount of currency.
Someone with only $1000 of risk capital, for instance, can actually
buy $100,000 of a currency to use for trading.
But even with that kind of leverage, no one should start trading Forex
without first studying the currencies market for an extended period.
Learning to recognize patterns in currency fluctuations is the only
way to develop an instinct for when to enter and exit when you are
trading Forex.
The Risks Of Trading ForexThere is risk involved in investing in any
of the financial markets. But thousands of investors have learned that
if they use discipline when trading Forex, they have a good chance of
clearing a nice profit without risking too much of their own money.
With trading platforms capable of instantaneously providing
fluctuations in the prices of various currencies, those trading Forex
can capitalize on small movements in the currencies markets and make
surprisingly impressive profits.
Trading the Forex market is much less complicated than trading stocks,
simply because there are only a handful of major currencies. Add that
to the high leverage available in the Forex markets, and the
correspondingly small amount of capital outlay required, and trading
Forex seems even more attractive.
Then consider the ability to trade Forex at any hour of the day or
night, and the exodus of traders from the stock market to trading
Forex is easily understood.
Limit And Stop Loss OrdersFor those nervous about the risks involved
in trading Forex, both limit orders and stop loss orders are
available. And because of the enormous liquidity of the currencies
market, even limit orders are filled almost instantaneously. A limit
order will allow an investor to specify both a buying and selling
price, and will not have to pay more or sell for less as long as there
is a buyer or seller who will meet that limit. If no one does, the
limit order will expire.
A stop loss means that an investor's position in a currency trade will
be liquidated as soon as the price of the currency hits that level. A
top loss order is a great way to get out of a currency trade which
goes bad without losing your shirt.
Trading Forex will also eliminate the commission you have been used to
paying your stock broker. That doesn't mean, however, that you can
trade for free. Forex brokers charge a "spread" on each purchase and
sale you make. You should learn exactly what that spread will cost you
before you start using a particular broker, and also investigate any
fees a broker might charge you if you hold a position in you account
overnight.

The Next Generation of Forex Robot: http://www.theacyclone.tk/

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