"How To" Start Trading The Forex Market? (Part 2)

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