HALAMAN SELANJUTNYA:
Forex Trading Basics For the Rookie Trader - Part 1Forex Trading is very popular nowadays because it allows a person to trade from anywhere and everywhere in the world. In order to do Forex Trading you don't need to possess any kind of diploma, license, proof of study, etc.
The business of Forex Trading is very economical and the costs involved in the start-up of this business are very low. Forex Trading requires you to open a Forex account that costs as little as $200. Although there are lots of Forex Trading firms available today, I personally recommend Fenix Capital Management as it offers a state-of-the-art Trading Platform. The platform of Fenix Capital Management allows you to directly place orders by just a click on the charts.
Some of the major benefits of trading in the FX spot market are as below:
There is no commission fees involved
Trading is possible 24 x 7
The leverage with which you can trade is as high as 400:1
A lot of advanced features including Live Charts and Free Streaming executable price quotes are available
There are two types of Forex trading involved - namely Cash Forex or Spot Forex and currency features. As a Forex Trader, it is very important for you to understand the difference both of these.
Spot Forex allows you to electronically trade up to 10 Million dollars. The end of the business day marks the closure of the futures market. In case the overseas market releases important data post the closure of the business day, the next day morning can spell quick doom in case the direction of the announcement is not in your favor. The Spot Forex market continuously runs between 7:00 AM New Zealand time Monday morning till 5:00 PM New York time Friday evening.
Forex traders in the major Forex trading centers such as Geneva, Sydney, Tokyo, London, Hong Kong, Singapore, New York, Toronto, etc, ensure that the liquidity migration from one time zone to another is as smooth as possible. While currency futures trade in non-USD denominations only, Spot Forex allows the trader to transact in any type of currency and in any denomination.
The currency futures suffer from sporadic lulls even during regular International Money Market timings and is marked by constant huge price gaps. However, there are quite a few risks involved in currency trading. Currency trading is suitable for only those individuals and institutions that can sustain the potentially high level of losses that can result sometimes from currency trading. Since the currency trading feature allows you to trade at the maximum leverage of 400:1 ratio, even a single percentile decline or loss might cause you to lose the entire investment.