Showing posts with label making money. Show all posts
Showing posts with label making money. Show all posts

Tuesday, January 6, 2009

Intra-day volatility

FX trading is centered around a handful of currency pairs referred to colloquially as the big seven. The high volume and liquidity combined with fewer active instruments generates greater intra-day volatility than the equity markets where hundreds of stocks are actively traded. It is this volatility that can be profitability exploited by forex traders.

Low spreads
Currency trading offers spreads that are much lower than what can be obtained when buying or selling equities, especially during after-hours trading. Although exceptionally tight currency spreads were previously reserved for transactions involving $1 million or more, a shift towards tighter spreads for smaller transactions is gaining traction. Again, OANDA's FXTrade is an industry leader in offering tight spreads regardless of the size of the trade.

Margin-based leverage
Leverage—or margin based trading—makes it possible for FX market participants to submit trades valued considerably higher than the deposits in their trading accounts. Typically, margin ratios for trading currencies are higher than those permitted for equities, and this is primarily attributable to the higher level of liquidity within the currency markets.
To illustrate the power of leverage provided through the use of margin, consider a margin ratio of 20:1 coupled with a trading account containing $10,000. This means that you could trade amounts up to $200,000! Trading in larger volumes allows you to take better advantage of even small price movements (but can also dramatically increases your risk). Read about OANDA's margin policy.

Friday, September 12, 2008

ForexGen Advice For Forex Traders

ForexGen provides its users with a full explained market analysis, fundamental or technical. ForexGen news centre could be your guide in making your calculations and forecasts for the coming period, and helps in analyzing fundamentals.

There are many Forex related websites available over internet where traders can obtain any information, updates, support and advice on how to trade currencies. The Forex market is considered quite stable, safe and easy to understand to compare with stock exchange market for example. Trading currencies was never easier than it is now with all the tools available from your local brokers.
With specific strategies like stop loss and limit orders, people have no need to spend all day in front of their PC and watch currencies moving. Now we can place our orders and enjoy making money from global financial markets.

All we need is a little knowledge about the subject and internet connection to be part of world’s biggest financial market. However before you start to trade, make sure that you are equipped with all possible tools well thought approach to trading as it will take effort to succeed. Remember that it is as good place to lose money as it is to make it.

Subscribe now for ForexGen Feeds for free and get our latest updates. You can also Open A Demo Account and try ForexGen Services.