Forex Explained

Understanding Leverage Part I

Money markets are the financial markets where short-term financial assets are bought and sold. Leverage is a loan given to clients by brokers for the sum deposited by them and it is really a double-edge sword because excessive leverage trades on small capital has very big rate of failure and If you don’t use leverage accordingly to manage the risk and know the benefits of risk reward then there is no benefit of using leverage more than 1:100, because more leveraged trade does attract lot of interest of making high returns but with time you does tend to fall for greed and fall for it.

All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.

The primary reason the FX market exists is to facilitate the exchange of one currency into another for multinational corporations that need to trade currencies continually (for example, for payroll , payment for costs of goods and services from foreign vendors , and merger and acquisition activity).

Currencies are grouped into pairs to show the exchange rate between the two currencies; in other words, the price of the first currency in the second commonly traded forex pairs (known as ‘major’ pairs) are EUR/USD, USD/JPY and EUR/GBP, but it is also possible to trade many minor currencies (also known as ‘exotics’) such as the Mexican peso (MXN), the Polish zloty (PLN) or the Norwegian krone (NOK).

There has been plenty of news and reports on China making effort to reduce corporate debt Coming out of China today are reports that the government is now setting up ministry-level initiatives to further the process, which is a stepping up a gear or two!But our solution has managed to be the first to deliver this hugely useful capability.

Desde 2004 que mercado de Forex registou crescimentos exponenciais, pelo aparecimento dos Brokers de Forex (Corretoras) Online, e pelo desenvolvimento de uma plataforma com nome de MT4 que revolucionou a forma de trading, oferecendo aos clientes uma forma prática, simples e compreensível.

Leave a Reply

Your email address will not be published. Required fields are marked *