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As compared to any other financial trading, Forex day trading has many advantages. Trading currencies is in many ways more advantageous than trading stocks or futures. The forex market is a true 24-hour market. This means that a currency trader can basically choose his/her own hours to trade. Forex day trading currencies require a lot less starting capital than day trading stocks. Thus, you could start out small in the currency market. Traders need to concentrate on a few major currencies only rather than on tens of thousands of stocks.
foreign exchange market
Before the advent of Internet and ecommerce, only big corporations, multinational banks and wealthy individuals could trade currencies in the Forex market through the use of the proprietary trading systems of banks. These systems required as much as US$1 million to open an account. Thanks to advancements in online technology, today investors with only a few thousand dollars can have access to the Forex market 24 hours a day and around 5 � days of a week.
foreign exchange trading
Spot FX transactions are usually based on currency rates quoted for two-day settlement (U.S. dollar versus Canadian dollar is traded for one-day settlement), in order In contrast to exchange transactions with real supply or real currency the participants of FOREX use trading with a margin deposit; i.e. marginal or leverage trading. In marginal trading, each transaction has two obligatory stages (they can be divided by period of time, which can be as long as you like): buying (selling) of currency at one price, and then selling (buying) it at another (or at the same) price. The first transaction is called opening the position, the second one, closing the position.Opening a position, a trader furnishes a deposit sum from 0.5 to 4 per cent of the credit line, granted for the transaction. So, in order to buy or sell 100,000 US dollars for Japanese yens, you will not need the whole sum, but only from 500 to 2000 US dollars depending on your policy of controlling risks. When the position is closed, the deposit sum returns, and calculation of profits or losses is done. All the profit or losses caused by the change of currency rates is credited on your account.
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I happen to believe if a child can learn to trade with some simple signals he will do better than most traders, most of the time, making a good living. But then again, movin market is more than just following the signals. Good trades to you.
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