What You Need to Know to Begin Trading Forex
What You Need to Know to Begin Trading Forex
Since trading can be done remotely. Wherever you happen to be—the kitchen table, the bedroom, the garage, or even the closest Starbucks—you should be able to connect thanks to their ubiquitous wireless Internet.
You can trade FOREX from any location with an Internet connection if you have a laptop and are a frequent traveller.
Nobody will ask for a degree, a license, or evidence of how many hours you've spent studying the banking industry or foreign exchange market when you wish to begin trading in the Forex market.
You Can Get Started in FOREX Trading for Very Little Money!
Most brokerage firms allow you to open an account with as little as US$200, allowing you to trade Forex.
In my opinion, the best trading platform is offered by Fenix Capital Management, LLC. Their user-friendly interface lets you place orders right from the screen.
Among the many advantages of trading foreign exchange spot prices are:
Commissions and fees are not paid by YOU!
At any time, day or night, you can exchange!
Trade with a leverage of up to 400:1!
Live charts and executable price quotations are available to you for free streaming.
Understanding the distinctions between currency futures and cash FOREX (SPOT FX) is crucial.
The contract size is fixed in advance when trading currency futures.
Any quantity up to ten million US dollars can be electronically traded with FOREX (SPOT FX).
Similarly to how the stock market closes each trading day, the futures market does the same.There may be huge gaps at the opening of the following trading day, and you might lose a lot of money if the trend goes against your position, if crucial data is revealed outside of the US futures markets while they are closed.
Starting at 7 am on Monday morning in New Zealand time and ending at 5 pm on Friday evening in New York time, the Spot FOREX market works nonstop, around the clock.
While liquidity moves across time zones, dealers in each of the main FX trading centers—Sydney, Tokyo, Hong Kong/Singapore, London, Geneva, and New York/Toronto—make sure the transaction goes off without a hitch.
In addition, investors in spot FOREX can trade in nearly any currency denomination or the more commonly quoted USD quantities, while currency futures can only trade in non-USD denominated currency amounts.
Despite being open during regular International Money Market (IMM) hours, the currency futures pit experiences periodic liquidity lulls and frequent price discrepancies.
Unlike Futures, the spot FOREX market provides deep liquidity at all times.
One can only trade certain currency pairs with IMM futures. The US dollar is the lone currency futures market participant.
In spot FOREX, you can trade currencies such as the Euro/JPY, the British Pound/JPY, the Swiss Franc/JPY, the Euro/Great Britain Pound, and the Australian Dollar/New Zealand Dollar, among others.
For the reasons listed below, an increasing number of educated investors and business owners are supplementing their conventional portfolios with foreign currency holdings in addition to equities, bonds, and commodities: (the next part)
CAUTION: Dangers in Trading Foreign Exchange: Institutions and individuals lacking the financial wherewithal to sustain substantial losses should not engage in the highly risky activity of margined currency trading. You can trade foreign currencies with a high degree of leverage (up to about 400 times your account equity) when you open an account with a broker. When trading at maximum leverage, even a one percent change in the value of the position(s) maintained in the account could result in the total loss of the funds in the account. Only invest risk capital that will not substantially impact the investor's financial well-being should be used to speculate in the foreign currency market.
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