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The Margin Advantages of Trading FOREX.
There is one aspect that is considered as one of the best
advantages of FOREX Trading. This is related to the amount of
money you need to place a trade, this is known as "margin", and
in short, this is all that can be lost in a the case you had a
bad trade.
I state it like this because, even though I know with proper
self-taught education you're NOT going to lose as much as you win
anyway, I want you to know that despite the super-high leverage
associated with FOREX trading (200:1 is possible; meaning that if
you put up $1 the trading vendor will allow you to trade like you
really have $200), it's still arguably less risky than futures
(commodities) trading. And, forget stocks, you'll never get this
type of LEVERAGE in the equities market.
Futures markets are often prone to sudden and dramatic moves,
against which you can not protect yourself, even by trading with
protective stops. Your position may be liquidated at a loss, and
you'll be liable for any resulting deficit in the account. But
because of the FX markets deep liquidity and 24-hour, continuous
trading, dangerous trading gaps and limit moves are eliminated.
Orders are executed quickly, without slippage or partial fills.
And finally, there are no margin calls -- for your protection,
ALL our recommended brokers will automatically close out some or
all of your open positions if your account equity falls below the
level required to hold the positions. Think of this as a final,
automatic stop, always working on your behalf to prevent a debit
balance. In fact, if you pick from our list of recommended
brokers, we guarantee that you will never lose more than you have
in your FOREX account.
http://www.1-forex.com
Omar Vargas; Forex trader and freelance writer. http://www.1-forex.com
 MORE RESOURCES updated Fri. April / 19 / 2024
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