Forex trading is the abbreviated name of "foreign". Forex market is a very trader-the-clock cash market where currencies are bought and sold in countries primarily through brokers. For example, you buy Euro, paying U. S. Dollar, or you sell Canadian Dollars and Japanese Yen. Forex trading market conditions can change at any time, in response to real-time events such as political unrest or inflation. This article aims to give you an introduction to forex trading.
Here are some unique features forex traders attract private investors if:
Availability: Forex trading market is open 24 hours a day, six days a week. His non-stop online access to global Forex dealers trading through their computer. This allows you to always log into your account and trade away.
Low margin requirements: Tolerance is defined in order to facilitate an agreement. Forex trading is usually a very small part of the deal, say 1% or 1:100. For example, if your margin is $ 100 (1% of the total work of forex trading in this case), you can $ 10,000 currency contracts. But the stock is "double-edged sword." Without proper application of risk management tools (ie, stop loss and take profit orders), occur in significant losses and gains.
Risk management tools are very important to successful forex trading system, in that it also "stop-loss and take profit orders. Stop-loss order is a market position in forex trading close losses to come, or when the threshold. Take-profit market position in forex trading to terminate or to reach while profits for the range.
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