The Margin Advantages of Trading FOREX.
There is one aspect that is considered as one of the best advantagesof FOREX Trading. This is related to the amount of money you need to place a trade, this is known as "margin", and in short, this is all that can be lost in a the case you had a bad trade.I state it like this because, even though I know withproper self-taught education you're NOT going to lose asmuch as you win anyway, I want you to know that despite thesuper-high leverage associated with FOREX trading (200:1 ispossible; meaning that if you put up $1 the trading vendor willallow you to trade like you really have $200), it's stillarguably less risky than futures (commodities) trading. And, forget stocks, you'll never get this type of LEVERAGEin the equities market.Futures markets are often prone to sudden and dramaticmoves, against which you can not protect yourself, even bytrading with protective stops. Your position may beliquidated at a loss, and you'll be liable for any resultingdeficit in the account. But because of the FX markets deepliquidity and 24-hour, continuous trading, dangerous tradinggaps and limit moves are eliminated.
Orders are executedquickly, without slippage or partial fills. And finally,there are no margin calls -- for your protection, ALL ourrecommended brokers will automatically close out some orall of your open positions if your account equity fallsbelow the level required to hold the positions. Think ofthis as a final, automatic stop, always working on yourbehalf to prevent a debit balance. In fact, if you pick fromour list of recommended brokers, we guarantee that you willnever lose more than you have in your FOREX account.http://www.1-forex.com.
FOREX Trader and Freelance writer.http://www.1-forex.com
Becoming a Millionaire
Copyright 2006 Timothy Rohrer
Many people don't know about the largest traded market in the world.
Currently over 1.2 trillion dollars is traded on a daily basis in the forex market.
Forex, or the foreign currency exchange market was a market that only large investors could play in and until just recently has become available to smaller investors.
For those of you that don't know, here is an example of how the forex market works.
If one were to take a vacation to Europe from the United States, you would have to exchange your US dollars into the Euros.
When you came back to the United States, you would then have to exchange your Euros back to US dollars.
During the time you were on vacation market news may have caused the US dollar to strengthen against the Euro.
Therefore, when exchanging your Euros back to US dollars, you may have made a bit of money.
What makes the forex arena so popular is...
Forex > Becoming a Millionaire
Day Trading the Forex Market Profitably - Part 2
Copyright (c) 2006 Avi Frister
To trade volatile and liquid markets
Since your job as a day trader is to capture intraday swings it is crucial that the market you are trading has enough movement to allow you to do this. It is also important that the market you are trading has enough liquidity so that order fills do not suffer from excessive slippage. You have to select a market that its volatility is permanent and not a temporary occurrence. Since you are basing your trading method on catching intraday price swings you have to know that you are trading in the right place. As a day trader volatility is your ally and you have to know that you can count on it every single day (or at least 90% of the days).
Liquid markets will provide you with good order fills. As a day trader this is very important since you are aiming at smaller profit objectives and hence larger slippage will eat away more of your profits. When trading several times a day this...
Forex > Day Trading the Forex Market Profitably - Part 2