Trading on margin means that you can buy or sell assets greater than the value of your account. You may be able to trade on margin in other investment accounts, but nothing like you can do in the FOREX market. Because currency exchange rates generally only fluctuate 1-2% daily, you can leverage your investment dollar for greater returns. The most common margin is 50:1, but you can find some trading accounts that will up to 200:1 margin.
For example, if your risk capital is $10,000, you could control $500,000 to $1,000,000 in currency contracts. This type of leverage gives you the potential to make profits very quickly, but you can also lose your money just as fast. It is recommended to have a disciplined investment plan that does not put all of your capital at risk and is followed by stop losses to protect your returns.
[ForexGen White Labels]
Forex White Label partnership allows the trader a quick access to the online foreign currency exchange market.
[ForexGen] provides two types of trading White Label partnerships, a limited and a full solution. ForexGen different types of forex White Label partners are able to access ForexGen's trading platform entirely branded under each partner's unique company image and name. We provide a customizable online trading platform for the different types of the two White Label solutions.
Tuesday, 6 January 2009
Why Forex: MARGIN
Labels:
ForexGen White Labels,
Margin
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