The Margin Advantages of Trading FOREX.

Published: 31st July 2005
Views: N/A
Ask About This Article Print Republish This Article
There is one aspect that is considered as one of the best advantages

of FOREX Trading. This is related to the amount of money you need to place a trade, this is known as "margin", and in short, this is all that can be lost in a the case you had a bad trade.



I state it like this because, even though I know with

proper self-taught education you're NOT going to lose as

much as you win anyway, I want you to know that despite the

super-high leverage associated with FOREX trading (200:1 is

possible; meaning that if you put up $1 the trading vendor will

allow you to trade like you really have $200), it's still

arguably less risky than futures (commodities) trading. And, forget stocks, you'll never get this type of LEVERAGE in the equities market.



Futures markets are often prone to sudden and dramatic

moves, against which you can not protect yourself, even by

trading with protective stops. Your position may be

liquidated at a loss, and you'll be liable for any resulting

deficit in the account. But because of the FX markets deep


liquidity and 24-hour, continuous trading, dangerous trading

gaps and limit moves are eliminated. Orders are executed

quickly, without slippage or partial fills. And finally,

there are no margin calls -- for your protection, All of our

recommended brokers will automatically close out some or

all of your open positions if your account equity falls

below the level required to hold the positions. Think of

this as a final, automatic stop, always working on your

behalf to prevent a debit balance. In fact, if you pick from

our list of recommended brokers (http://www.1-forex.com

) , we guarantee that you will never lose more than you have in your FOREX account.

This article is free for republishing
Source: http://omarvargas.articlealley.com/the-margin-advantages-of-trading-forex-3572.html


Report this article Ask About This Article Print Republish This Article


Loading...
More to Explore
 


Ask a Professional Online Now
27 Experts are Online. Ask a Question, Get an Answer ASAP.
Type your question here...
Optional:
Select...