Initially when thinking that forex is an investment business , I was deep in thought " how much capital is needed ? " If the capital to earn a base , the greater your capital in forex , the better the chances to survive from floating negative and the opportunity to add positions more order . It turns out these days , no business with small capital that can generate large revenues except forex or other equity markets . There may be some truth in the phrase that says , " if you want to be a big fish , the bait should also big . " That's why , when I first heard about forex business , which is pictured in my mind is the amount of capital are in need to be successful in forex . Maybe for $ 1000 . It turns out I missed the perception , in the forex capital is a guarantee only. By using a careful calculation , capital $ 1,000 is included in the major forex . Unlike when we trade / entrepreneurial conventionally , of $ 1,000 is a very small nominal .
This is where the benefits of margin trading noticeably . Because of the margin trading , we can make transactions without having to have a capital of transactions that we do . Meanwhile, to execute transactions in forex , just to capitalize PC , internet connection and science / knowledge is simple forex you can learn for free , then we can do the transaction in any currency you like . So we can trade anytime and anywhere , as long as connected to the Internet .
Nowadays a lot of brokers do offer free for new traders who want to jump in forex without capital, due to intense competition in the industry forex brokers, each broker must be very clever promotion to get clients, one of which is "lent" or so-called capital welcome bonus. If we make trades through a broker, then the broker we intercede with the market and at the same time "giving bailout" for the transaction we do. And of course the capital free no side effects for you, the broker already has its own budget, it's just that there are some requirements so that you can get a welcome bonus. Do not worry because the condition only to confirm personal data, the rest is free. Interestingly, there are brokers who offer a welcome bonus of up to $ 50.
Then how the flow of the relationship between the trader and the broker? This goes back to the notion of leverage that we will discuss now. Well, when we register at a broker, we get an offer on the leverage that we will use. Some brokers allow clients to choose their own type of leverage, but there are also brokers who define only one leverage option for certain types of accounts. Preview leverage as follows: If the leverage is 100:1 assigned a broker, meaning we only had to use a fund of $ 1 to trade for $ 100. So if we have a fund deposit of $ 5 in the brokerage, $ 1 of capital we will be placed as margin used for the transaction of $ 100 which will put a halt to trading in the event of any analysis, while the remaining $ 4 into the margin. Thus, any losses we may experience from every transaction that we do will automatically reduce the remaining funds from which we place them.
The term "Margin Call" applies when the rest of our funds are available margin depleted by losses that we have experienced and we are automatically covered transactions (including closed). While the "Leverage" is often described as the volume leverage. That is, with leverage, then our ability to transact many times. Imagine, traders only need to provide a guarantee of $ 1 to make a deal for $ 100. That if the applicable leverage of 100:1. Many brokers that offer leverage of 500:1, even 1.000:1 Then we simply put $ 1 for transactions of $ 1,000.
But keep in mind, the greater the transactions that we do, the greater the risk of loss that we endure. With leverage, we as traders can get the maximum benefit and also the potential for greater losses.
This is where the benefits of margin trading noticeably . Because of the margin trading , we can make transactions without having to have a capital of transactions that we do . Meanwhile, to execute transactions in forex , just to capitalize PC , internet connection and science / knowledge is simple forex you can learn for free , then we can do the transaction in any currency you like . So we can trade anytime and anywhere , as long as connected to the Internet .
Nowadays a lot of brokers do offer free for new traders who want to jump in forex without capital, due to intense competition in the industry forex brokers, each broker must be very clever promotion to get clients, one of which is "lent" or so-called capital welcome bonus. If we make trades through a broker, then the broker we intercede with the market and at the same time "giving bailout" for the transaction we do. And of course the capital free no side effects for you, the broker already has its own budget, it's just that there are some requirements so that you can get a welcome bonus. Do not worry because the condition only to confirm personal data, the rest is free. Interestingly, there are brokers who offer a welcome bonus of up to $ 50.
Then how the flow of the relationship between the trader and the broker? This goes back to the notion of leverage that we will discuss now. Well, when we register at a broker, we get an offer on the leverage that we will use. Some brokers allow clients to choose their own type of leverage, but there are also brokers who define only one leverage option for certain types of accounts. Preview leverage as follows: If the leverage is 100:1 assigned a broker, meaning we only had to use a fund of $ 1 to trade for $ 100. So if we have a fund deposit of $ 5 in the brokerage, $ 1 of capital we will be placed as margin used for the transaction of $ 100 which will put a halt to trading in the event of any analysis, while the remaining $ 4 into the margin. Thus, any losses we may experience from every transaction that we do will automatically reduce the remaining funds from which we place them.
The term "Margin Call" applies when the rest of our funds are available margin depleted by losses that we have experienced and we are automatically covered transactions (including closed). While the "Leverage" is often described as the volume leverage. That is, with leverage, then our ability to transact many times. Imagine, traders only need to provide a guarantee of $ 1 to make a deal for $ 100. That if the applicable leverage of 100:1. Many brokers that offer leverage of 500:1, even 1.000:1 Then we simply put $ 1 for transactions of $ 1,000.
But keep in mind, the greater the transactions that we do, the greater the risk of loss that we endure. With leverage, we as traders can get the maximum benefit and also the potential for greater losses.
| Related Keywords: |
| australian forex trading, singapore forex trading, online brokers, stock and trade, forex trading platform, discount brokerage, forex trading platforms, online forex trading platforms, spread trading, trade stocks, foreign exchange trading, forex trading in singapore, stock trading company, forex trading demo, talking forex, stock day trading, forex trading courses, trade forex online, forex trading broker, best forex trading software |
Written by Unknown
We love the world of forex. Sharing information about forex is our way of showing happiness. Therefore we made a "Campus of FOREX" as a portal to learn forex.
Forex is not something to fear, but fear when you are not able to control yourself in the forex or whatever. When profit in forex it becomes your personal responsibility, and when you lose in forex it also becomes your personal responsibility. Forex simply as a facility to achieve financial freedom, no more no less. Forex is a place to think realistically.
Being successful in forex, it means you are committed to establish a disciplined and thoughtful character. Forex may be the best mirror of your true character. Forex is just forex.
Happy reading.
0 comments:
Post a Comment