If you have searched the terms "trading" or even "stock trading", you have probably noticed all those Google Ads about currency trading or forex trading. Currency market trading seems to be the next big thing on the "how to make money online" -series.
In upcoming articles I am going to you a bit about what forex market is, how it is different than stock markets, how to trade etc. etc. First lets tackle on the question "how is forex market different than stock markets" because almost all of you know at least something about the stock markets.
#1 No commission
When you trade stocks, you generally pay a commission every time you buy or sell. Not so in forex market. You don't pay any kind of commission. All you pay is the bid-ask spread which is very small in the major currency pairs.
#2 Trade on your schedule
Forex markets are open 24 hours a day! You can enter or exit a trade anytime you want. Of course there are times when the market if more active but the fact remains the same, you can buy or sell anytime you want.
#3 Liquidity
Currency market is huge! Much larger than NYSE for example, meaning you can get away from your position INSTANTLY.
#4 Such as easy to go long or short
Shorting is much harder in stock exchanges because of the up-tick rule. That means that you can only go short IF the last tick was up. No such rule in forex. You want to short? Just short and you will get your position instantly.
#5 Low account minimums
You can open an account with smaller amounts of capital than is the case in stock markets. In fact, there is at least one broker which has no minimum account size. Generally though people can start trading with as low as $250.
#6 Always moving
You will always find a currency pair that is moving due to technical indicators or global news event.
#7 Huge leverage
You can leverage you money 50-100, and even 200, times. That means that you can open an account with $500 but trade with $50000. Talk about return-of-investment if you are a good trader. Unfortunately this works to the other way also.
For more information, please see:
http://currencyforexonlinetrading.zoxic.com/
Peke Dippeli is an online trader who specializes in currency forex online trading. For more information, please see http://currencyforexonlinetrading.zoxic.com/
In upcoming articles I am going to you a bit about what forex market is, how it is different than stock markets, how to trade etc. etc. First lets tackle on the question "how is forex market different than stock markets" because almost all of you know at least something about the stock markets.
#1 No commission
When you trade stocks, you generally pay a commission every time you buy or sell. Not so in forex market. You don't pay any kind of commission. All you pay is the bid-ask spread which is very small in the major currency pairs.
#2 Trade on your schedule
Forex markets are open 24 hours a day! You can enter or exit a trade anytime you want. Of course there are times when the market if more active but the fact remains the same, you can buy or sell anytime you want.
#3 Liquidity
Currency market is huge! Much larger than NYSE for example, meaning you can get away from your position INSTANTLY.
#4 Such as easy to go long or short
Shorting is much harder in stock exchanges because of the up-tick rule. That means that you can only go short IF the last tick was up. No such rule in forex. You want to short? Just short and you will get your position instantly.
#5 Low account minimums
You can open an account with smaller amounts of capital than is the case in stock markets. In fact, there is at least one broker which has no minimum account size. Generally though people can start trading with as low as $250.
#6 Always moving
You will always find a currency pair that is moving due to technical indicators or global news event.
#7 Huge leverage
You can leverage you money 50-100, and even 200, times. That means that you can open an account with $500 but trade with $50000. Talk about return-of-investment if you are a good trader. Unfortunately this works to the other way also.
For more information, please see:
http://currencyforexonlinetrading.zoxic.com/
Peke Dippeli is an online trader who specializes in currency forex online trading. For more information, please see http://currencyforexonlinetrading.zoxic.com/
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