Forex Trading Leverage and Costs

Many people would like to trade for a living, but the biggest problem they face is a lack of capital. In order to make a living trading in the stock market, traders really need to plan on having an initial balance of at least $100,000.

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Why there are no commissions in Forex Trading?

When trading stocks, futures or options an investor will use a broker who executes the trade and charge a commission for the service. Forex trading, however does not involve commissions. Forex trading firms are dealers not brokers – they assume market risk by acting as a counterparty to the trade. Forex dealers make money through …

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Forex Market Participants

The main participants in the forex market are central banks, commercial and investment banks, hedge funds, pension funds, corporations and private speculators. An estimated 95% of the daily trading volume in the is done by speculators and investors – ranging from the individual trader to the leading banks of the world. The remaining 5% is …

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Chosing a Forex Broker – What to Look For

Tight Spreads: Look for competitive spreads. This is the difference between the bid and offer and is measured in pips. This is what it will costs to enter a trade, since it is not possible to buy on the bid or sell on the offer in the Forex market. Forex brokers are usually tied to …

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Currencies Traded in Foreign Exchange

Virtually any currency can be traded through a broker – providing it is backed by an existing nation. Currencies are defined by three letter symbols, where the first two letters stand for the name of the country and the third stands for the name of the currency. The major currencies are: the US Dollar (USD), …

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