Market for currency trading

Currencies were exchanged since decades for international trade. This exchange led to the emergence of Forex market, wherein the asset being bought and sold is currency. You buy a currency paying a different currency and then sell it on a later point in time fetching a higher or lower price for the same. This is the basic activity of Forex currency trading system. Value of currencies is relentlessly fluctuating and so are the rates of exchange. Whenever there is a price fluctuation for a currency its exchange rate changes in relation to another currency. There are multiple factors affecting the price of a currency. The ...

Introduction to Forex Trading

Most of you must have often heard the term Forex or Fx. Forex is nothing but foreign exchange or international currency exchange. Simply speaking, if you are an American, then British Sterling Pound or European Euro or any other currency is a foreign exchange for you. Huge amounts of Forex change hands in the global trade and commerce. Besides the international business transactions, forex has also established a firm foothold in the investment portfolio of large number of people. You may wonder how you can invest in forex. Is it like investment in stocks and bonds? Is it suitable to a layman like me? Well, according to ...

Understanding Margin and Leverage

In forex trading jargon margins and leverage imply margin trading or leveraged trading. In reality you can start forex currency trading with a very small amount of capital outlay called as initial margin. Leverage is expressed by ratio and margin is stated in terms of percentage. Forex trading brokers offer leverage ratio starting from 50:1 and it can be as high as 200:1. The same thing when expressed as margin percentage, it can be stated that the margin required is 1% if the leverage ratio is 100:1. For example if your forex trading broker asks you to pay 1% margin, then you have to pay 1000$ for buying or ...