Wednesday, November 9, 2011

How to earn on Forex

Earn a change in exchange rates, anyone can, going to the nearest exchange. He waited, realizing that the rate of a currency increases, the person is trying to quickly get some money to further its sales. If you want to enrich themselves well in the Forex market, you do not think it is very simple. If you have a small initial capital, it is very difficult. Let's look at why.

In the forex market, the participants enjoyed lever, or margin trading.


Lever (marginal) trade consists of two stages - purchase of currency for a certain price and sell the currency for the same price or a new (modified). So, these two actions are called opening and closing positions. Between these operations can be any period of time, the desire trader.

First of all, when you open a position, the participant (ie, traders) need to make sure a certain amount of collateral, ranging from 1% to 4%, depending on the credit line, which he chose. After closing the position, the pledge, which brought the trader becomes available again in the account, ie "Alive". After this, all profits and losses incurred in the operation, restored at the expense of the participant. How it all looks in action. You have decided that the euro will soon rise from 1.1250 to 1.1470 and bought euros for dollars. And after a while your prediction comes true, and you sell the euro bought more than they purchased.

For transactions there, you can set different credit shoulders, like shoulder with the ratio of 1:100, which means that this sum, which can operate with a trader in the market will be 100 times higher than the amount introduced into the bank deposit. The bank in turn organizes the customer access to foreign exchange transactions with the amount equivalent to the hundredfold bail.

Operations using these instruments are very profitable, but are you at great risk.

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