Introduction to Margin Forex

The global foreign exchange market is the largest market in the world with more than $1.5 trillion daily turnover, this surpasses the combined turnover of the world’s stock and bond markets. The high liquidity, competitive price quotes, on-line trading, accessible research and news has made Margin Forex (FX) trading the growth retail trading product and has made the trading of foreign currencies more accessible to the trading investor.

Some of the major driving forces behind currency fluctuations are interest rate differentials, inflation, government policies, economic situation and technical analysis perspective

Margin Forex gives an investor the opportunity to trade over 100 foreign exchange currencies on a margined basis as opposed to paying for the full value of the currency with leverage up to 50 times the currency value, twenty four hours a day- seven days a week. With low dealing costs, transparent driving forces and dynamic movements makes Margin FX an attractive trading product for the savvy investor.

With the currency markets constantly moving, there are always trading opportunities, whether`a currency is strengthening or weakening in relation to another currency. When you trade currencies, they literally work against each other. If the EURUSD declines, for example, it is because the US dollar gets stronger against the Euro and vice versa. So, if you think the EURUSD will decline (that is, that the Euro will weaken versus the dollar), you would sell EUR now and then later you buy Euro back at a lower price and take your profits. The opposite trading scenario would occur if the EURUSD
appreciates.

Note: The risk of loss in trading in derivatives and/or leveraged products can be substantial. A client should carefully consider whether trading such products is appropriate for them in light of`their financial circumstances and objectives.