| Why is FOREX trading so popular? | | | | The Spot FOREX market runs continuously on a |
| | | | 24-hour basis from 7:00 am New Zealand time |
| Because you can trade from anywhere. From | | | | Monday morning to 5:00 pm New York Time |
| your kitchen table, bedroom, garage or from | | | | Friday evening. |
| the nearest Starbucks coffeehouse ( most of | | | | |
| them have wireless Internet connection). | | | | Dealers in every major FX trading center |
| | | | (Sydney, Tokyo, Hong Kong/Singapore, London, |
| If you have or like to travel, take your | | | | Geneva and New York/Toronto) ensure a smooth |
| laptop with you and you can trade the FOREX | | | | transaction as liquidity migrates from one |
| anywhere in the world where you have an | | | | time zone to the next. |
| Internet connection. | | | | |
| | | | Furthermore, currency futures trade in |
| When you want to start trading the Forex | | | | non-USD denominated currency amounts only, |
| Market nobody is asking you for a diploma, a | | | | whereas in spot FOREX, an investor can trade |
| formal license or a proof of how many hours | | | | in almost any currency denomination, or in |
| you have spent studying the Foreign Exchange | | | | the more conventionally quoted USD amounts. |
| Market and/or Banking Industry. | | | | |
| | | | The currency futures pit, even during Regular |
| FOREX Trading is Economical and Start-up | | | | IMM (International Money Market) hours |
| Costs are Low! | | | | suffers from sporadic lulls in liquidity and |
| | | | constant price gaps. |
| You can open an account to trade Forex with | | | | |
| as little as US$ 200 at he most brokerage | | | | The spot FOREX market offers constant |
| firms. | | | | liquidity and market depth much more |
| | | | consistently than Futures. |
| I personally do recommend Fenix Capital | | | | |
| Management, LLC, which offers a state of art | | | | With IMM futures one is limited in the |
| Trading platform, that allows you to place | | | | currency pairs he can trade. Most currency |
| orders directly by clicking on the chart. | | | | futures are traded only versus the USD. |
| | | | |
| The Main Benefits of Trading the FX Spot | | | | With spot FOREX, you may trade foreign |
| Market are: | | | | currencies vs. USD or vs. each other on a |
| | | | 'cross' basis, for example: EUR/JPY, GBP/JPY, |
| YOU don't pay commissions or fees! | | | | CHF/JPY, EUR/GBP and AUD/NZD |
| | | | |
| YOU can trade 24-hours a day ! | | | | More and more well informed investor and |
| | | | entrepreneurs are diversifying their |
| YOU can trade up to 400:1 Leverage ! | | | | traditional investments like stocks, bonds & |
| | | | commodities with foreign currency because of |
| YOU can have FREE Streaming executable Price | | | | the following reasons: (will be continued) |
| quotes and live charts! | | | | |
| | | | RISK WARNING: |
| It is important to know the differences | | | | |
| between cash FOREX (SPOT FX) and currency | | | | Risks of currency trading: Margined currency |
| futures. | | | | trading is an extremely risky form of |
| | | | investment and is only suitable for |
| In currency futures, the contract size is | | | | individuals and institutions capable of |
| predetermined. | | | | handling the potential losses it entails. An |
| | | | account with an broker allows you to trade |
| With FOREX (SPOT FX), you may trade | | | | foreign currencies on a highly leveraged |
| electronically any desired amount, up to $10 | | | | basis (up to about 400 times your account |
| Million USD. | | | | equity). The funds in an account that is |
| | | | trading at maximum leverage may be completely |
| The futures market closes at the end of the | | | | lost if the position(s) held in the account |
| business day (similar to the stock market).If | | | | experiences even a one percent swing in |
| important data is released overseas while the | | | | value, given the possibility of losing one's |
| U.S. futures markets is closed, the next | | | | entire investment. Speculation in the foreign |
| day's opening might sustain large gaps with | | | | exchange market should only be conducted with |
| potential for large losses if thedirection of | | | | risk capital funds that, if lost, will not |
| the move is against your position. | | | | significantly affect the investors financial |
| | | | well-being. |