how involved Forex market

how involved in Forex market  The answer is quite simple: through brokerage firms Brokers are the ones who give an opportu...


how involved in Forex market 


The answer is quite simple: through brokerage firms

Brokers are the ones who give an opportunity to small investors 

to initiate operations on the Forex market. 

For becoming a client of a broker one needs to open an 

account and make a deposit. The deposit requirements 

vary from broker to broker. For instance IFC Markets requires 

a minimum of $1 per starting trading. For the purpose 

of increasing the client’s profits every company establishes 

certain credit level which is called leverage. The 

deposited amount is multiplied with the leverage size 

and the trader trades with greater lot while losing only 

the money he has invested on his/her own. Thus it may 

be concluded that for trading with 100 000lot in case of 

1:100 leverage $1000 deposit is required. 

LIQUIDITY: Forex market is different from the markets 

where people buy or sell products property etc. For instance 

when selling an apartment how many buyers can 

you find for only 1 second? Zero… How many of them 

can you find during a day? –Maybe 3-4. In contrast Forex 

market does not have such limits as a trader may open 

positions and make deals with the market maker only in 

1 second. High liquidity is highly attractive point for every 

investor because it enables the possibility to trade with 

any volume. 

PROMPTNESS AND AVAILABILITY: As Forex market operates 

for 24 hours the access is possible at any time in 

contrast to stock market which is open only during trading 

hours which surely may not be convenient for your 

time zone. Forex traders do not need to wait to react on 

an unexpected event as it happens in other markets. 24 

hours operation lets traders trade whenever they like: 

after work at nights during their leisure time etc. For 

trading one needs just to have a laptop or a mobile and 

Internet connection. Take into consideration that at the 

weekends Forex market is closed thus hurry up to manage 

your trading until Friday night. 

COSTS: The client sells the traded currency with the Bid price 

and buys with the Ask price. The difference between them is 

called Spread. Surely this spread is different depending on 

the currency pair and the clients prefer low spread because 

in fact it affects the results of trading. The spread is greater 

for those currencies that are traded less frequently thus the 

spreads of major currencies is quite low. IFC Markets offers 

low and fixed spreads to its clients. 

LEVERAGE: All traders have an opportunity to trade with 

greater volume due to the leverage which is provided by 

the broker. More precisely saying it is the availability to 

make profit from a large position in the market for a small 

cost known as margin. Different companies provide different 

leverage sizes. For instance IFC Markets suggests 

up to 1:400 leverage. There are some leverage limitations 

depending on the account types and the volume of the 

deals. 

Currencies: Prices and the Pips 

The main object of trading in the Foreign Exchange is the 

currency. Currencies are written in Latin symbols (ISO codes) 

which have become a traditional international practice. 

These codes have only 3 characters: the first two characters 

stand for the country name and the last character stands for 

the currency name. 


Forex market, Forex trading, learn Forex, USD American Dollar

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Aenean commodo ligula eget dolor Aenean massa.Aenean commodo ligula eget dolor Aenean massa.

You Might Also Like

4 comments

Flickr Images