Most forex brokers allow a very high leverage ratio, or, to put it differently, have very low margin requirements. This is why profits and losses vary greatly in forex trading even though currency prices do not change all that much — certainly not like stocks. Stocks can double or triple ...
When we founded ForexBrokers.com in 2016, we knew that we wanted to make it easier for traders to identify secure, reliable brokers. It’s a harsh reality; not every player in the finance industry is trustworthy, and not every company that offers brokerage services has your best interests a...
Forex day trading involves exchanging one currency for another to make a profit from short-term fluctuations in exchange rates.This guide to forex day trading for beginners explains what the foreign exchange market is, which currencies you can trade, and how to start day trading forex online....
We'll go through each of these important questions in detail below, to make sure you have the information you need to avoid forex scams.1. Is the broker regulated?Unregulated brokers do not have to report to a governing body. If an unregulated broker scams you in any way, whether it be...
Forex brokers make their money in different ways. Some charge commissions per-trade, although this is rare. Most of them make money on spreads, also known as “pips.” Pipis an acronym for “percentage in point.” In dollar currencies, a pip is equal to 1/100 of a cent ($0.0001) wh...
What is Margin Margin goes hand in hand with leverage. Leverage is the amount you can magnify your position, margin is the amount of money you have to put up to trade a position. Currently in the US, brokers can offer you 50:1 leverage and that equates to 2% margin. With 50:1 le...
To calculate margin requirements based on trade size and leverage use our handy Forex Margin Calculator. What is Money Management Money management is a set of rules that will help protect your capital and ultimately, assist you in growing your trading account.The most important rule is to risk ...
Leverage/Margin Requirements In order to ensure that traders can afford to set up forex trades with far less money, the concept of leverage was introduced. Leverage is a mechanism that allows traders to perform trades of a higher amount than their capital can ordinarily carry. In forex leverage...
Use leverage appropriate to your comfort level:A 50:1 leverage means that a 2% adverse move could wipe out all your equity or margin. If you are a relatively cautious investor or trader, use a lower level of leverage that you are comfortable with, perhaps 5:1 or 10:1. What Is Leverage...
The primary way traders make money in forex is by correctly predicting currency price movements. When a trader goes "long" on a currency pair like EUR/USD, they profit if the euro strengthens against the dollar. Conversely, going "short" means profiting when the first currency weakens against...