|Forex Trading is trading foreign currency exchange rates on international money markets. The forex market is the largest financial market in the world.
trader in the forex market is the world's governments, the world's major banks, international companies, hedge funds, speculators and individual foreign currency. Thus the number of players in the forex market is causing a very rapid turnover.
Here are some of the advantages offered by forex trading that can not be offered any other investment:
1. Highest return on investment compared to other investments.
2. High liquidity.
3. Capital required is relatively small, only 1% of the contract value.
4. Hours trading 24 hours a day, 5 days a week.
6. Investors active in investment.
The Contract Value: 100.000 currency, - / Lot
Profit / Loss:
= (Selling price - purchase price) x contract value x Number of lots
You expect the euro will rise against the USD and in the morning you buy EUR / USD at 1.4100 as price of 2 lots. In the afternoon, the euro strengthened and liquidate your position at 1.4200 price.
= (1.4200 - 1.4100) x 100,000 x 2 lots = $ 2000
** This calculation is illustrative and does not include commissions and interest, may be otherwise if the customer does not take the position that the direction of the price movement.
** NixonFx Product