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Author Topic: Forex Trading For the New Trader  (Read 400 times)


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Forex Trading For the New Trader
« on: March 13, 2019, 12:03:12 PM »
Forex trading is one of the more profitable opportunities for  Paxforex Review both professional and new traders. It is easy to see why. Forex trading, especially trading forex online is challenging and exciting but once you learn the basics it gets easier and easier. Then the challenge becomes one of over confidence and not allowing yourself to over trade. There are many appealing aspects in this form of financial trading such as available leverage, high liquidity, 24 hour 5days a week trading accessibility and of course, very low trading costs. Individual traders are not the only ones interested in forex trading, big business uses forex to hedge currencies and protect their positions in various markets where they are engaged in import/export business. However, in terms of turnover, financial institutions still take the lead. They are the big players, the banks, brokers and the like. Any investor is able to engage in forex trading, provided, of course that they have the necessary trading funds and reasonable industry knowledge.

Foreign exchange is traded on margin. This means that the trader only needs a relatively small amount to control a much larger position in the forex arena. For instance, if you want to trade a thousand dollars, your required working deposit would be ten dollars. In order to achieve this result, the ten dollars is geared by a factor of one hundred. One of the interesting things about forex trading is its ability to make you huge profits in a very short time frame. For example, if there was 1% change in the full value of your investment your trade profit could be a 100% gain or maybe a 100% loss. This highlights the potential for huge potential profits and possible financial disaster.

Forex trading is obviously risky but despite this traders are still keen to participate. Part of the reason can be attributed to the very high liquidity in the market together with the convenient 24 hour nature of the worldwide market. This means that you can respond to the market at any time of the day or night and from any corner of the world where there is an internet link. In the forex market there are no commission charges the brokers earn their money from the spread, normally about 3 pips for the major currency pairs but if you shop around you should be able to easily get a 2 pip spread, at least on the euro/dollar pair.

Everyone has heard of, and most have indulged in some form of stock trading or the other. However, there is a new kid on the block and its name is Forex Trading. Online currency trading is a fast growing market. The Forex Market never sleeps. A currency trader may take advantage of all market conditions at any time. There is no waiting for an opening bell as in the case of trading stocks. It is a 24-hour, continuous currency exchange that never closes (normal hours of operation are Sunday 1pm through Friday 2pm Pacific standard time). This is very desirable for those who want to trade on a part-time basis, because you can choose when you want to trade: morning, noon or night.