Forex Advantages
"Leverage" is the Forex advantage
The ratio of investment to actual value is called "leverage". Using a $1,000 to buy a forex contract with a $100,000 value is "leveraging" at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.
How does one profit in the Forex market?
Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the currencies, but rather involves contracts for amount and exchange rates of currency pairs.
The advatageous thing about Forex market is that regular daily fluctuations- in the regular currency exchange markets, often around 1% - are multiplied by 100!
How risky is Forex trading?
You cannot lose more than your initial investment (also called your "margin"). The profit you may make is unlimited, but you can never lose more that the margin. You are strongly advised to never risk more than you can afford to lose.
The ratio of investment to actual value is called "leverage". Using a $1,000 to buy a forex contract with a $100,000 value is "leveraging" at a 1:100 ratio. The $1,000 is all you invest and all you risk, but the gains you can make may be many times greater.
How does one profit in the Forex market?
Obviously, buy low and sell high! The profit potential comes from the fluctuations (changes) in the currency exchange market. Unlike the stock market, where share are purchased, Forex trading does not require physical purchase of the currencies, but rather involves contracts for amount and exchange rates of currency pairs.
The advatageous thing about Forex market is that regular daily fluctuations- in the regular currency exchange markets, often around 1% - are multiplied by 100!
How risky is Forex trading?
You cannot lose more than your initial investment (also called your "margin"). The profit you may make is unlimited, but you can never lose more that the margin. You are strongly advised to never risk more than you can afford to lose.
You might want to get a personal assistance and free training to learn trading in Forex. I recommend Easy-Forex, they have easy-to-use and user-friendly platform.
2 comments:
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