By Timothy Rohrer, Thu Dec 8th
Copyright 2005 Timothy Rohrer
The foreign exchange market, also knows as FOREX, originated in1973 has become the largest e-currency trade market in the worldtoday. FOREX trading occurs 24 hours a day, 5 days a week. TheFOREX market offers a unique trading opportunity to thoseseeking a substantial profit in a market that trades over 1.2trillion dollars each day.
FOREX market is primarily traded between central banks,commercial banks, non-banking International Corporation, hedgefunds, private investors and speculators. Previously smallinvestors were unable to trade in the FOREX market due to thelarge deposit required. However until recent years, with thecontinuing growth of the internet and competition, FOREX tradinghas made it so small investors can now open a FOREX tradingaccount with as little as $250.
There are a few factors as to why FOREX investing is starting toattract more small investors. For one, FOREX can be traded 24hours a day 5 days a week. Previously trades were placed byphone, the internet has made it possible for traders to monitortheir FOREX trading accounts from home and execute trades inreal time with the click of a mouse button.
In order to start trading in the FOREX market, one must firstopen an account with a broker. It is recommended to obtain alist of brokers
and do some research before deciding on whichbroker to deal with. Each broker offers different policies anddifferent spreads on each currency that is traded.
Before trading in FOREX, one must first understand the risk andreward behind margin trading in FOREX. A margined account can beleveraged, which means trading in FOREX can be done with solelycash or a combination of cash and collateral such as a securitydeposit. The main risk involved in margin trading is that margintrading tends to inflate loss. In addition the rate of loss andleverage makes FOREX a high risk investment. However, regardlessof the downside in margin trading, FOREX is still veryprofitable as huge gains can be made.
There are plenty of resources on the internet that will discusstrading strategies, emotions and what it takes to become asuccessful trader. Most of these web sites are going to tell youthat emotions play the largest roll in your success as a trader.Any experienced trader will tell you that trading is apsychological game and usually the people who go against thecrowd are the ones that end up making the money. When you decideto get started in the FOREX market be sure to look at multipleresources and decide on which broker will be the best for you.
About the author:Tim Rohrer is an established publisher and has been trading inthe forex market for 2 years. To learn more about the forexmarket visit http://www.forex-investing.us
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