Why should you trade forex? This is a good question. The forex market is the most liquid of all the different financial markets. Nowadays forex trading is accessible to almost everyone. With the recent influx of retail brokers offering trading accounts with very low minimums in a wide selection of different currencies, currency trading really is now possible for the masses.
Mini account only needs a small amount of money so you can trade various instrument with high leverage. For example, in order to trade 1 lot of EUR/USD with contract size $10,000, you only need $25 with leverage 1:400. With many brokers allow you to open a forex mini account with only $250 – for example – it means that you will have money to trade approximately 8 lots (Not 10 lots. It is because we must calculate the ‘auto cut’ system based on the trading rules. So let’s say it is approximately 8 lots).
For sure, you may have already met and dealt with forex brokers that only offer a fixed spread, which is good if the buying and selling rates are good. But the main problem with fixed forex brokers is that the rates remain the same no matter how high or no matter how low the selling rates are. On the other hand, a forex ECN broker can guarantee and assure investors a larger percentage of success due to its flexible characteristics. It can greatly adapt to the rates in the market which is even better for traders. To learn more about it visit www.forexbroker500.eu.
It is compulsory for you to at least familiarize with the different kinds of orders so as to open and close trades. Learn to use the tools available to you, like the charts and graphs which can help you to better analyse the market trends and hence, enable you to plan you next move. You have to be swift and know the right time to trade, this is very crucial to your success. So it is apparent to all that if you could make use of the visual tools effectively, you will not be too far away from your preferred destination.
It does not cost a lot to invest in the forex. You can open accounts for as little as $250 – sometimes even less. I have even seen examples of brokers paying you money just to open an account. Now admittedly, these opportunities are rare and you will have to earn a certain percentage on your investment before you will receive the money they gave you, but it still happens. And just about every forex broker allows you to open a demo account to enhance your trading skills for free. This way you can learn the principles of trading before you ever invest a dime.
Floating Profits/Losses (P/L): This is the “virtual” profits or losses if you were to close your existing positions that are still left open. It is reflected in your account equity but not your account balance.
Fixed spreads sound like a very attractive offer. We all hate dealing with any kind of changes and we like to see fixed prices (especially when we buy something regularly!). The acceptable bid/ask spread for major currency pairs such as EUR/USD is 3 pips, but it is possible to find a lower option.However, in forex market fixed spreads might be less profitable. After all, it is a volatile market and you better get used to changes!
These are two new forms of getting income from the internet. With these two, you can be sure that you will be able to earn some extra cash. In fact, if you become good at it, you can even consider this as your regular job.