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What is Forex? | We have 469 free forex articles/answers for you.
What is Forex? | We have 469 free forex articles/answers for you.
Latest Articles
Forex For Beginners – Making Money From Currency TradingFOREX stands for Foreign Exchange and it stems from the international financial market. That is, the Forex market, the place where currencies of different countries are bought and sold in a similar manner to the buying and selling of share market in...
Forex Trading: The Fundamentals and the Technical
Foreign Exchange Market, FOREX, is an international exchange market where currencies from all around the world are traded. FOREX trades are always done in pairs, for example, USD/Euro, USD/JPY, Euro/JPY, GBP/CHF, and CAD/USD. United States dollars,...
Online Forex Trading Platform Brings The Trading World Home
Forex trading has entered the home and lives of many people around the world, both men and women; all of them coming from many walks of life. Being this a relatively new phenomenon in the department of alternative income opportunities. It was only...
Comments on Forex Trading Account Sizes, Lots and Margin Calls.
Forex trading is one of the best business opportunities you can think of joining these days. No other market in the world allows the "Leverage" that the profitable world of currency-trading does. Leverage is all about margin trading. In the Forex market, it is essentially the ratio of the amount used in a trade to the required security deposit needed, by the particular broker you chose to use, for that trade.Normally, for most brokerages, a margin deposit of just $1,000 allows you to control a $100,000 position in the Forex market. That's 100:1 leverage, or 1%. Or, said in a different way, a "regular full-sized account", sometimes referred to as a 100k account, allows you to trade with lot sizes equal to $100,000. Each lot is worth $100,000 in currency. So It would only require $1,000 to trade one lot.
This great feature in Forex trading is what makes this market the hottest market to trade in right now. The Forex broker has given you a loan of $99,000 dollars secured only by your $1,000! This is a huge loan and, as you may know by now, this is what allows traders to make extraordinary incomes in this market. And, as you also are probably used to hearing , "leverage is a two-edged sword" , it is what can cause you to lose a lot of money if you trade without rules or Stop-loss orders.
But just as an example, let's say you were a person that likes to trade with reckless abandon, i.e., with no strategy, no common sense, no money- management principles, etc. That's never recommended for anyone, but being a Forex trader has such great
advantages, that even someone with a trading mind like the one described before, will never lose more than what he has placed into a trade.
Unlike Futures (Commodity Trading), the market that most people associate with High leverage, you can never have a debit balance when trading Forex.
So, despite the greater leverage associated with FX trading, it is still arguably less risky than futures trading. Futures markets are often prone to sudden and dramatic moves, against which you can't protect yourself, even by trading with protective stops. Your position may be liquidated at a loss, and you'll be liable for any resulting deficit in the account. But because of the Forex markets great liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are very unprobable. Orders are executed quickly, without slippage or partial fills, which is just great.
And as it was not enough, there are no margin calls, for your protection, the forex broker's trading platform will automatically close out some or all of your open positions if your account equity, meaning the total floating value of the account, falls below the level required to hold the positions. Think of this as a final, automatic stop, always working on your behalf to prevent a debit balance.
About the author:
Adrian Pablo; Forex trader and freelance writer.
You can download a free Fibonacci trading report at his website:
http://www.1-forex.com
Written By: Adrian Pablo
WORLD FOREX: Dollar Ekes Out Gains In Thin Holiday Trade Wall Street Journal TORONTO (Dow Jones)--The dollar eked out marginal gains Friday in activity made narrow and illiquid by the close of US ... FOREX VIEW:Dollar Could Firm Within Existing Ranges Next Week WORLD FOREX: Return Of Risk Aversion Keeps Dollar Rising WORLD FOREX: Dollar Posts Large Gains After June Jobs Report |
 Reuters | WORLD FOREX: Dollar Rises, Euro Falls Waiting For Payrolls Wall Street Journal LONDON (Dow Jones)--A small rise in risk aversion has helped the dollar and hit the euro in Europe Thursday as the market waits for the ... FOREX-Dollar falls as stocks gain; Europe data dent demand WORLD FOREX:Euro Falls Below $1.40, Down Vs Yen On Payroll Data WORLD FOREX: Yen Up On Risk Aversion After US Jobs Data |
 Boston Globe | FOREX-Dollar up vs euro, down vs yen on weak US jobs data Reuters "The weak jobs report reinforced a trend already in place in the forex market prior to the release, that is, that the dollar was oversold," said Camilla ... Still No Change in Tight Forex Ranges after ecb's Rate Decision Forex trends: euro is trading down versus majors Dollar gains as US jobs report rattles markets |
 Reuters | FOREX-Euro recovers from sharp falls vs dollar Reuters LONDON, July 3 (Reuters) - The euro recovered modestly against the dollar on Friday after falling sharply in the wake of bleak US jobs ... Forex − Risky Assets take a hit on US Payrolls FOREX-Dollar dips vs euro in holiday-thinned trade Forex news: the yen falls against European majors as Japanese ... |
WORLD FOREX: Dollar Mixed In Light Holiday Flows Wall Street Journal TORONTO (Dow Jones)--The dollar is mixed Friday morning as light trading flows due to the Independence Day holiday in ... |
Japan's new forex tsar seen sticking current stance Reuters Besides economic turbulence, Tamaki is faced with a global debate on whether the world should decrease its dependence on the dollar as the main ... |
A Forex Trader's Tale of Central Bank Intervention Forex Hound In those days the dollar was under pressure so most of the orders were to buy dollars. It was the early 1980s and I co-managed a trading operation for a ... Forex Market Update: Japanese Yen Crosses Pare Losses In European ... WORLD FOREX: Dlr/Yen Up As PBOC Comments Ease Concerns Forex trend: yen pares its early Asian gains |
WORLD FOREX: Dlr Back Up A Bit Vs Yen After Post-Jobs Fall Wall Street Journal TOKYO (Dow Jones)--The dollar rose back slightly against the yen in Asia Friday after tumbling yesterday on weak ... |
 China Daily | WORLD FOREX: China Helps Dlr; Risk Hits Euro, Data Hit Pound Wall Street Journal LONDON (Dow Jones)--Reassurances from China about its reserve policy left the dollar higher but the euro has ... Dollar gains as data suggest brighter US economic outlook FOREX-Dollar recovers, supported by low risk demand Stocks gain on recovery hopes |
 AFP | CORRECT:WORLD FOREX: Rising Risk Appetite Pushes Dollar Lower Wall Street Journal ("=WORLD FOREX: Rising Risk Appetite Pushes Dollar Lower" published at 0928 GMT and 0929 GMT, misstated the level of the dollar against the yen in the 15th ... Liquidity crunch to keep US dollar demand strong Forex Trading - Dollar Down, Positive Finance News Dollar drops against rival currencies |
