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Tuesday, 13 July 2010
Forex Traders
High leverage/low margins: Most Forex providers offer traders leverages of 100 to 1. This means
that for every $1000, a trader controls $100,000 worth of contracts. iForex offers traders leverages
as high as 400:1, the highest level available on the market.
There is a very small amount of equity required as collateral for such a relatively large position. At
iForex, there is full margin usage, meaning that a position is automatically closed only when losses
equal the total available amount in the account, negating the possibility of a negative account
balance. This is an important means of keeping any potential losses within a predetermined,
manageable budget.
Liquidity: With $2 Trillion traded daily, Forex is the world’s most liquid market. Consequently, buy
and sell orders can be filled practically instantaneously.
24-hour trading: The Forex market operates 24 hours a day, from Sunday evening to Friday
afternoon EST. As a result, traders can react to any important information immediately, and are not
as vulnerable to after-hour loss of value.
No bear market: There is the ability to make the same profit in any market, bullish or bearish. The
strength of any particular economy is irrelevant to potential profits.
Low transaction costs: There are no hidden fees or commissions in Forex trading. Providers are
paid directly from the pip spread.
Small study sample: Unlike the stock market in which there are thousands of options to choose
from, there are only seven major currencies in Forex, and most successful traders limit their focus
to three or four.
Courtesy: iforex.com
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Forex Traders
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