Why Forex Trading?
Simply defined, foreign exchange (Forex) trading is exchanging one country's currency for another's. It comprises four variables: currencies, exchange rates, time and interest rate. The way these components interrelate provides small investors with a return on their investment that they don't generally find in the more traditional trading venues.
So why trade Forex? What makes the Forex market so hot these days?
Forex is not affected by any one bear market. Forex traders buy and sell foreign currency pairs from around the world, simultaneously buying one and selling the other. One currency is always in the up swing while the other is on the down swing. Choosing the right side at the right time means profit.
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Forex never sleeps. It’s a 24-hour market. |
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The four most frequently traded pairs (the U.S. dollar, the yen, the Euro and the British pound) are never without buyers and sellers. |
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Superior liquidity helps ensure that you can execute trades at a fair price. |
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50:1 leverage (compared to 2:1 with equities and 15:1 with futures), coupled with the small price movement typical of the currency market and appropriate risk management, can double your initial investment. |
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Lower transaction fees contribute to better profits. |
Interested in trading Forex? Then, here's what eSignal offers you!
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Forex data from GTIS (best bid / ask by contributor), the primary supplier, for more than 20 years, of foreign exchange information used by traders, corporations and financial institutions | |
| • | Spot rates for more than 100 currencies, as well as precious metals | |
| • | Cross rates | |
| • | Forward rates | |
| • | Nearly 200 global bank and broker contributions
(Asia / Pacific Rim, Russia, Europe and North America) (Check out the complete listing.) |
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| • | Forex Market Depth with the ability to view the best bid / ask by Forex contributor | |
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Additional contributors: HotSpot FX Institutional, one of the largest inter-dealer brokers in the world | |
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Streaming, real-time quotes, charts and news for the information you need to trade Forex successfully | |
Read "Basics of Currency Trading: An Overview of Forex"
Read "Basics of Currency Trading: The Life of a Typical Forex Trade"
Read "Basics of Currency Trading: The Institutional Forex Market"
