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Forex trading or online foreign currency exchange is gaining popularity in the recent months. Before the year 2005, only high nett worth individual can afford to trade currency. To start a Forex trading account, an individual needs at least a fund of USD100,000. What’s more the burnt rate of such accounts is also high. At that time, leveraging was unheard of. Essentially, what you trade is what you will lose or win.
The Forex trading market went through a revolution, when the government liberalizes the market. It becomes exceedingly popular in Japan where the trade becomes very popular with females, who are also known as the kimono trader. As you may have guessed, the kimono traders are mostly housewives who learn the trade to earn extra income.
Once the Forex market is available to retail trader like us, it becomes more and more popular. Forex brokers worldwide are also offering traders 100:1 and even 200:1 leverage. This means that with only USD1, you as a trader control a total of USD100 currency that is being traded. It not surprising then, you only need USD250 to start an account. With such a small capital, you can try your hand at this exciting and popular market.
It is comforting to know that the online foreign currency exchange market is the biggest market in the world with a turnover of USD 4 trillion a day. It is bigger than all the stock exchange markets worldwide combined. Because of such a huge liquidity, it is less likely to be manipulated by any one single entity. Hence, there is much less insider trading incidences when compared with the stock market or options market.
It is also very easy to open an account. Regardless of your residing country, you may open an account with a broker in the U.S.A with just the click of a mouse. A word of caution, though, you should research on the broker you want to work with it. Do go for the brokers that are regulated in their home country for example, Forex.com or MIG. There are reliable brokers you can trust your money with.
In addition, there are now many teaching schools that offers courses and classes to teach you the basics of Forex trading and also the various strategies that is relevant to the different pairs that is being traded. Again, it s of your interested to research on these schools to ensure they are reliable schools that give you value for money.
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Source by Vivienne T
