Currency Trading for a Living
You have to admit it has a nice ring to it when people say “What Do you do for a living” and you reply with “I buy and sell foreign currency”. It has an air of importance and automatically suggests wealth; why not after all the market does boast a massive three trillion dollars traded on it every day. It sounds good that you have the ability to start with very little money and manage to earn in excess of 400 times the amount your original investment.Forex And Other Products You Can Trade
When I started learning about the Forex market, I was amazed about the concept of leverage. Leverage is technically a loan that is provided by the Forex broker or financial institution that is handling the clients account. This “loan” allows a trader to invest more money than they have in their account, thus either significantly increasing their profits or if the market turns against them, decreasing their profits.9 Reasons Why Traders Fail in Forex
I came across many people who have asked me about Forex trading and perhaps financial trading on the whole. It is not an easy task explaining why trading can be so risky to the retail trader. First and foremost, trading is way riskier then traditional investments like mutual funds (unit trusts), bonds and stocks.Fascinating Facts of Currency Trading
In the normal sense, ‘Trading’ implies purchase and sale of goods at a specified place called the market. For example, shares are sold and bought in a stock market; commodities are bought and sold in a commodity market. Interestingly, for trading in currencies there is no market place at all.Choosing The Right Forex Broker
Modern traders make use of Forex brokers. Brokers act as the middleman that does the actual buying and selling of the currency. Usually brokers are large companies, but they may be individuals as well. Brokers usually earn their income by commissions or fees generated by either the volume of currency traded, or from the spread (the difference between the buying and selling price of a currency pair).