Chances & Risks at Forex Markets 1

Sat Aug 31, 2019 2:10 am (Last edited: Sat Aug 31, 2019 2:10 am)
avatar  Forex

Micro-trades fast trading: While ordinary trading in equities, commodities and ETFs can be a real test of patience for some investors, as prices may only change very slowly, trading with forex brokers has a much faster pace , With currency rates changing daily and foreign exchange trading around the clock, the FX market is one of the fastest markets in the world. This pace is accelerated even faster by the use of levers and other financial instruments that allow even small price changes to have a major impact. Thus, there are not a few investors who open and close their positions several times a day to profit from short-term price developments. As risky as this business model is, foreign exchange is ideal for such micro trades.

Levered Trading: If you have a small amount of capital, you can trade levers in forex trading. This makes it possible to profitably exploit even small price movements (in currency trading, these are sometimes a fraction of a cent).

Short-term capital commitment: Since the capital is tied to forex brokers, especially in the field of micro trades sometimes only for a few minutes or hours, FX trading is also suitable for investors who can dispose of only relatively small amounts of freely available capital. In this respect, the forex investment differs so much from the classic ETF or equity investment, in which the own assets are usually bound for months and years. But beware: The ability to enter into FX trading even with small amounts of money available is also his greatest temptation. So before any FX trade, consider whether you can handle the total loss of the invested investment in the extreme case. Otherwise, be sure to invest in lower-risk investments that tie your capital longer but less risky. Because the danger of the complete loss of the invested capital is always given with the Forex trade.


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