"How To" Begin Trading In The Forex Market? ( Part 2)
In conclusion, why is FOREX trading so popular?
Because you can trade from any location. From your kitchen table, bedroom, garage, or the nearest Starbucks ( most of them have wireless Internet connection).
If you have or prefer to travel, bring your laptop with you and trade FOREX from anywhere in the globe that has an Internet connection.
Nobody asks for a diploma, a formal license, or proof of how to trade the Forex market when you want to get started.
What is the appeal of FOREX trading?
Because you can trade from any location. From your kitchen table, bedroom, garage, or the nearest Starbucks ( most of them have wireless Internet connection).
If you have or prefer to travel, bring your laptop with you and trade FOREX from anywhere in the globe that has an Internet connection.
Nobody asks for a diploma, a formal license, or proof of how many hours you have spent studying the Foreign Exchange Market and/or the Banking Industry when you wish to start trading the Forex Market.
FOREX Trading is Economical and Has Low Start-Up Costs!
Most brokerage providers allow you to start a Forex trading account with as little as $200.
Personally, I propose Fenix Capital Management, LLC, which provides a cutting-edge trading platform that allows you to make orders by simply clicking on the screen.
The following are the primary advantages of trading the FX spot market:
YOU pay no commissions or fees!
YOU can trade 24 hours a day, 7 days a week!
YOU have the ability to trade with up to 400:1 leverage!
YOU CAN GET FREE LIVE CHARTS AND STREAMING EXECUTABLE PRICE QUOTES!
It is critical to understand the distinctions between cash FOREX (SPOT FX) and currency futures.
The contract size in currency futures is fixed.
With FOREX (SPOT FX), you can exchange any amount up to $10 million USD electronically.
At the end of the business day, the futures market shuts (similar to the stock market).
If critical data is released overseas while the US futures markets are closed, the next day's opening may have large gaps, with the potential for large losses if the move is in the opposite direction of your position.
The Spot FOREX market is open 24 hours a day, from 7:00 a.m. New Zealand time on Monday morning to 5:00 p.m. New York time on Friday evening.
Dealers in each major FX trading hub (Sydney, Tokyo, Hong Kong/Singapore, London, Geneva, and New York/Toronto) guarantee that transactions run smoothly as liquidity moves from one time zone to the next.
Furthermore, currency futures only trade in non-USD denominated currency quantities, whereas an investor can trade in nearly any currency denomination or in the more often quoted USD amounts in spot FOREX.
Even during regular IMM (International Money Market) hours, the currency futures pit suffers from occasional lulls in liquidity and frequent price discrepancies.
The spot FOREX market provides far more consistent liquidity and market depth than Futures.
The currency pairs that can be traded with IMM futures are limited. The majority of currency futures contracts are only traded against the US dollar.
Spot FOREX allows you to trade foreign currencies against the US dollar or against each other on a 'cross' basis, such as EUR/JPY, GBP/JPY, CHF/JPY, EUR/GBP, and AUD/NZD.
Because of the following reasons, an increasing number of informed investors and entrepreneurs are diversifying their traditional investments such as stocks, bonds, and commodities with foreign currency: (to be continued)
WARNING: RISK:
Currency trading risks: Margined currency trading is an exceedingly dangerous kind of investment that is only appropriate for persons and institutions that can handle the possible losses.
A broker account allows you to trade foreign currencies with high leverage (up to about 400 times your account equity).
Given the danger of losing one's whole investment, monies in an account trading at maximum leverage may be fully lost if the position(s) held in the account see even a one percent movement in value.
Foreign currency trading should only be done with risk capital funds that, if lost, will not have a substantial impact on the investor's financial well-being.
