|
|
|
A Short Introduction To FOREX.
FOREX is the world’s largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the...
Forex Pivot Points: Mapping Your Time Frame
It is useful to have a map and be able to see where the price is relative to previous market action. This way we can see how is the sentiment of traders and investors at any given moment, it also gives us a general idea of where the market is...
Forex Trading: The Perfect Forex Trading System
Trading the Forex market has became very popular in the last few
years. But how difficult is it to achieve success in the Forex
trading arena? Or let me rephrase this question, how many
traders achieve consistent profitable results trading the...
Investing vs. Trading: Who Cares Anyway?
The mutual fund industry requires customers that buy their funds and never sell them. So naturally, they disseminate a lot of editorial decrying any trading, market-timing or re-allocating that includes selling their mutual funds. This non-selling...
On the Soundness of Our Banks
Banks are institutions where miracles happen regularly. We rarely entrust our money to anyone but ourselves – and our banks. Despite a very chequered history of mismanagement, corruption, false promises and representations, delusions and...
|
|
| |
|
|
|
|
|
|
Forex Trading: Margin Usage and Introduction to Hedging
A good rule of thumb for either a mini-account or standard forex
account, is to limit your margin usage for each trade to 5% -
10% of your usable margin.
As an example, if your usable margin is $5000, to trade safely,
limit your margin usage for each trade to a maximum of $250.
This means trading only 1 full lot for each trade. This is
assuming that you are trading in a CMS Universal account with
400:1 margin. Your use of margin is increased with a smaller
ratio, as most other brokerages only offer a smaller ratio,
normally 200:1 or even 100:1.
As your account grows and your usable margin grows, you can
increase your margin usage and trade bigger mini or full lot
sizes. If you lose money and your account shrinks, drop your
margin usage back down to smaller sizes. You need to learn to
keep your eye on your usable margin, especially if you've
suffered some losses.
Protect your usable Margin by not having more than 2 open hedged
or unhedged position at any one time. Your usable margin &
equity will get eaten up by un-hedged open positions that go bad
in the wrong direction...this is a really good reason why you
want to use stops, and if you hedge, hedge tightly.
IMPORTANT: Don't just keep putting on positions because you
think it's a good opportunity. First sell a position and book
some usable margin before you put on another position.
NOTE: Hedging does not use up more margin! Use it to protect
your equity & usable margin, esp. in an emergency situation!
If you break the hedging rules, and your positions go
against
you and you aren't properly hedged with stop losses, you'll
quickly see your usable margin degrade. If it degrades enough so
that your usable margin goes into the negative, you'll get a
margin call. This means that the operators will automatically
start selling some of your lots in your oldest losing positions
in order to beef up your usable margin. This makes your
unrealized loss become a realized loss...and the money is gone
from your account.
If you lose too much useable margin, they won't even let you
trade in your account, the message they'll give you when you try
to put on a new trade is, 'Account in Untradeable Condition'.
If this happens, you might have an open position that needs to
be hedged immediately or you might need to sell an old position.
Or you might need to deposit more money into your account. Then
you can start trading smaller lots to win back some usable
margin.
You can lose your entire account balance if you're not careful.
One other good thing about forex trading is that you will never
lose more money than is in your account, you won't have to sell
your house if you get a margin call! Stick to the rules above
and this won't happen to you. You'll make more money than you
thought possible and without the stress of loss.
About the author:
Cynthia Macy is co-author of 'The Day Trade Forex System: The
Ultimate Step-By-Step Guide To Online Currency Trading'.
http://www.daytrade-forex.com http://www.successtrading2000.com
http://www.professionalforextradingonline.info
http://www.shorterminvestingsite.com
|
|
|
|
|
| Currency Trading, Forex Trading, Forex, Online Currency Trading |
| Offers 24 hour online currency trading for institutions and professional traders. |
| www.fxcm.com |
|
| OANDA FXGame - Currency Trading Demo Platform |
| You can start playing the currency trading market with real market conditions ... The platform was created with the goal of making currency trading ... |
| fxgame.oanda.com |
|
| Forex | Forex Trading | Forex Minis | Online Currency Trading |
| FOREX.com - THE site for forex trading. 24hr commission-free currency trading w/ real time execution and guaranteed fills. Forex mini accounts from $250, ... |
| www.forex.com |
|
| Currency Trading News, Forex Trading News, FX News, Forex News |
| Currency Trading News, Forex Trading News, FX News, Forex News - Daily FX. |
| www.dailyfx.com |
|
| Currencies - Currency Converter & Latest Rates at CNNMoney.com |
| Dec 6 1:18pm ET †, US $, UK £, Japan ¥, Euro €. US $, 0.5079, 115.05, 0.7517. UK £, 1.969, 226.50, 1.4798. Japan ¥, 0.008692, 0.004415, 0.006533 ... |
| money.cnn.com |
|
| FOREX Advisory |
| The CFTC urges you to be skeptical when promoters of foreign currency trading claim that their services or account management will earn high profits with ... |
| www.cftc.gov |
|
| Forex Trading: Online Currency Trading from Global Forex Trading |
| Global Forex Trading is the premier online foreign currency trading firm and a primary market maker. To learn more about forex trading, visit GFTForex.com. |
| www.gftforex.com |
|
| Amazon.com: Foreign Currency Trading: From the Fundamentals to the ... |
| Amazon.com: Foreign Currency Trading: From the Fundamentals to the Fine Points: Books: Russell Wasendorf by Russell Wasendorf. |
| www.amazon.com |
|
| Forex, Online Currency Trading, FX, Foreign Exchange | ACM Forex |
| Forex Trading with The Forex Broker. ACM offers online currency trading, commission-free, tax-free, lowest forex spreads on the market, guaranteed fills, ... |
| www.ac-markets.com |
|
| OANDA FXTrade - Currency Trading, Forex Trading, Online Currency ... |
| Currency Trading with FXTrade, leader in online currency trading, provides real-time execution, free forex charts and quotes, and 24 hour forex trading. |
| https: |
|
| Forex-Day-Trading.com - Currency Trading with FREE Training |
| Learn how to day trade currencies with our free training. Try a free forex trading demo for 30 days. |
| www.forex-day-trading.com |
|
| Forex Online Currency Trading: Welcome to Global Forex |
| Global Forex offers online currency forex trading at inter-bank FOREX rates. Try our FREE online forex demo trading system. |
| www.globalforex.com |
|
| Forex trading - Realtime Forex online currency trading |
| Realtime Forex offers commission-free online currency trading on live foreign exchange prices. Realtime Forex’s currency trading service also includes free ... |
| www.realtimeforex.com |
|
| Forex Blog |
| Forex news blog with daily commentary. Has a good beginner's article. |
| www.forexblog.org |
|
| Common Questions About Currency Trading |
| Whether you're puzzled by pips or curious about carry trades, your queries are answered here. |
| www.investopedia.com |
|
| OANDA FXTrade - Currency Trading Basics |
| Currency Trading Basics. Exchange Rates and Spreads: ... In currency trading, these codes are often used to express which specific currencies make up a ... |
| fxtrade.oanda.com |
|
| Currency trading, free forex charts, news and analysis |
| Online currency trading with technical analysis, charts and forex news. |
| www.gfforex.com |
|
| Finance - Currency-Trading Ezine Articles |
| EzineArticles.com allows ezine or email list publishers to upload or download free expert content that can be used within email newsletters or websites. |
| ezinearticles.com |
|
| MGFOREX |
| MG Financial Group - Forex, FX, Online Forex Trading. |
| www.mgforex.com |
|
| DirectoryM - Debt Settlement Solutions |
| Simply provide your contact details and describe your needs to receive a free consultation from business or personal debt service providers. |
| www.directorym.com |
|
|