Day Trading in the Currency Markets Currency trading can be really exciting for the day trader. Every day, trillions (yes, trillions with a ton) of dollars in currency are exchanged between governments, banks, travelers, businesses, and speculators. With every trade and every point in the exchange rates, you have new opportunities to make money. Currency … Read more
Business Models of Currency Trading Brokers Most online forex brokers act as a market maker for your trade, which means that the broker is on the other side of every trade – when you buy, you buy from the broker; When you sell, you are selling to the broker. Usually, brokerage firms from market makers … Read more
Who Regulates the Financial Markets? In the United States, financial markets receive general regulatory oversight from two government agencies: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). They both have similar goals: to ensure that investors and traders have enough information to make decisions and prevent fraud and abuse. However, … Read more
High-End Investments: Foreign Currency Trading and Hedge Funds You can put your money into high-quality investment vehicles, such as foreign exchange (or forex) trading and hedge funds. High-end investing does not involve as much investing (buying and holding) as it does in trading or speculation – assuming the risk of working in the hope of … Read more
Brokers for Day Trading in the Foreign Exchange Markets The foreign exchange market, or forex market, is the largest trading market in the world and provides plenty of opportunities for day traders to make (or lose) money. Most forex trading takes place between banks, companies, and hedge funds directly, without the use of a broker. … Read more
What Is Currency Trading? Currency trading is speculative, pure and simple. The securities you are speculating on are the currencies of different countries. For this reason, currency trading revolves around the speculative dynamics of the market, or trading, and the factors that affect the value of currencies. Put them together and you will have the … Read more
The Rise of Electronic Currency Trading The forex markets have had a limited form of electronic trading since the mid-1980s. At that time, the primary medium for electronic trading relied on an advanced communication system developed by Reuters, known as Reuters Dealing. It was a closed network, a real-time chat system long before the Internet … Read more
Start Currency Trading with a Practice Account For beginners in currency trading, the best way to learn about currency trading is to open a practice account with any of the online forex brokers. Most of the online forex brokers offer training accounts that allow you to experience the real price movement of the forex market. … Read more
Leverage a Position while Day Trading in the Foreign Exchange Market In the stock market, day traders can borrow up to three times the amount of cash and securities deposited in their accounts (although not all companies allow you to borrow the legal maximum), and this amount is determined by external regulatory organizations. In the … Read more
How to Avoid Common Forex Trading Mistakes No matter how long you have been trading in the foreign exchange (Forex) markets, you are bound to experience loopholes in the trading system, whether they are caused by unusual market developments or emotional extremes. Here are the main pitfalls of forex trading. If you start seeing any … Read more