|
|
|
Forex trading for the little guy
Since alot of these systems are dealing in Forex, we thought that we should provide a overview of what "Forex" is. The FX Market Structure The foreign exchange market is the generic term for the worldwide institutions that exist to exchange or...
Forex Trading - Understanding Commissions, Spreads and Trading Costs
The forex market is quickly becoming one of the most popular markets for trading.
Not only are the experienced traders looking to this market to maximize their trading returns, but many new, individual investors are now able to trade the Forex...
How Do Other Countries Devalue Their Currencies?
Countries devalue their currencies only when they have no other way to correct past economic mistakes - whether their own or mistakes committed by their predecessors.
The ills of a devaluation are still at least equal to its...
Three Reasons to Start Derivatives Trading
If you are looking for a trading option outside of traditional stocks and bonds, derivatives trading may be a good option. Derivatives pay off over a period of time based on the performance of assets, interest rates, exchange rates, or indices. The...
What Is Rollover Interest In The Forex Market?
In the spot forex market, all trades must be settled in two business days. A rollover refers to the process of closing open position for today's value date and the opening of the same position for the next day's value date at a price reflecting the...
|
|
| |
|
|
|
|
|
|
Forex Trading: Margin Usage and Introduction to Hedging
A good rule of thumb for either a mini-account or standard forex
account, is to limit your margin usage for each trade to 5% -
10% of your usable margin.
As an example, if your usable margin is $5000, to trade safely,
limit your margin usage for each trade to a maximum of $250.
This means trading only 1 full lot for each trade. This is
assuming that you are trading in a CMS Universal account with
400:1 margin. Your use of margin is increased with a smaller
ratio, as most other brokerages only offer a smaller ratio,
normally 200:1 or even 100:1.
As your account grows and your usable margin grows, you can
increase your margin usage and trade bigger mini or full lot
sizes. If you lose money and your account shrinks, drop your
margin usage back down to smaller sizes. You need to learn to
keep your eye on your usable margin, especially if you've
suffered some losses.
Protect your usable Margin by not having more than 2 open hedged
or unhedged position at any one time. Your usable margin &
equity will get eaten up by un-hedged open positions that go bad
in the wrong direction...this is a really good reason why you
want to use stops, and if you hedge, hedge tightly.
IMPORTANT: Don't just keep putting on positions because you
think it's a good opportunity. First sell a position and book
some usable margin before you put on another position.
NOTE: Hedging does not use up more margin! Use it to protect
your equity & usable margin, esp. in an emergency situation!
If you break the hedging rules, and your positions go
against
you and you aren't properly hedged with stop losses, you'll
quickly see your usable margin degrade. If it degrades enough so
that your usable margin goes into the negative, you'll get a
margin call. This means that the operators will automatically
start selling some of your lots in your oldest losing positions
in order to beef up your usable margin. This makes your
unrealized loss become a realized loss...and the money is gone
from your account.
If you lose too much useable margin, they won't even let you
trade in your account, the message they'll give you when you try
to put on a new trade is, 'Account in Untradeable Condition'.
If this happens, you might have an open position that needs to
be hedged immediately or you might need to sell an old position.
Or you might need to deposit more money into your account. Then
you can start trading smaller lots to win back some usable
margin.
You can lose your entire account balance if you're not careful.
One other good thing about forex trading is that you will never
lose more money than is in your account, you won't have to sell
your house if you get a margin call! Stick to the rules above
and this won't happen to you. You'll make more money than you
thought possible and without the stress of loss.
About the author:
Cynthia Macy is co-author of 'The Day Trade Forex System: The
Ultimate Step-By-Step Guide To Online Currency Trading'.
http://www.daytrade-forex.com http://www.successtrading2000.com
http://www.professionalforextradingonline.info
http://www.shorterminvestingsite.com
|
|
|
|
|
|
OANDA
|
|
Includes currency converters, currency daily table, historical tables and charts, and forecasts. |
|
www.oanda.com
|
|
|
Forex Capital Markets
|
|
Offers currency trading in the major pairs and the crosses. |
|
www.fxcm.com
|
|
|
Forex Trading - Currency Trading
|
|
Forex Trading - foreign exchange or foreign currency trading, brokers. ... In Forex trading, the currency of one nation is traded for that of another. ... |
|
www.forextradingplus.com
|
|
|
FXConverter - OANDA
|
|
Multi-lingual exchange rate conversion tool for 164 different currencies. |
|
www.oanda.com/convert/classic
|
|
|
Global Forex Trading
|
|
24-hour trading in all major currencies. |
|
www.gftforex.com
|
|
|
Forex.com
|
|
Offers 24-hour commission-free currency trading, training programs, educational content and tools, real-time market info, and more. |
|
www.forex.com
|
|
|
OANDA FXTrade - Currency Trading, Forex Trading, Online Currency Trading, Forex
|
|
Currency Trading with FXTrade, leader in online currency trading, provides real ... innovating new currency tools. ... The Currency Site. Privacy Policy ... |
|
fxtrade.oanda.com
|
|
|
Daily FX
|
|
Provides daily currency trading news, Forex charts, and more. |
|
www.dailyfx.com
|
|
|
Foreign Currency (FOREX) Trading Scams information
|
|
... recent years, including a sharp rise in foreign currency (forex) trading scams ... financial markets, including those involving so-called "foreign currency trading. ... |
|
www.quatloos.com/beware |
|
|
Currency Trader Magazine -- February 2007
|
|
... for strategies, analysis and news for currency and Forex traders and investors. ... Currency Trader is a monthly full-feature digital magazine covering trading ... |
|
www.currencytradermag.com
|
|
|
FOREX Advisory
|
|
forex advisory ... FOREIGN CURRENCY TRADING FRAUDS ... If so, you need to know how to spot foreign currency trading frauds. ... |
|
www.cftc.gov/opa/enf98/opaforexa15.htm
|
|
|
Forex Trading, Currency Trading Portfolios, Model Trading Portfolios
|
|
Account Options. Trading Software. Live Clients ... What Happens if Oil Breaks $50 a Barrel? 2007 FX First Quarter Currency Outlooks ... |
|
www.fxcmtr.com
|
|
|
Currency Converter - Yahoo! Finance
|
|
View exchange rates for top currencies and convert currencies from over 100 countries. |
|
quote.yahoo.com/m3?u
|
|
|
online currency trading
|
|
online currency trading - sales and detailed info online ... a few heads, China will soon allow over-the-counter trading in its Yuan currency. ... |
|
currency |
|
|
National - Currency Trading - bizjournals - Orlando
|
|
... exchange services to currency trading to manage currency fluctuations for your business. ... Try a Free practice account and learn how currency trading works. ... |
|
bizjournalsdirectory.com/orlando/dm/default.aspx?...&source=96
|
|
|
MoneyFOREX.com
|
|
Online currency broker offering low pips and commission-free forex trading. |
|
www.moneyforex.com
|
|
|
Global-View
|
|
Forum for foreign currencies and foreign exchange trading. |
|
www.global |
|
|