Forex Trading: Speculative Operations Part 1

Each quarter one billion of the world situation is earned in the financial markets. Perhaps, most of them risky and potentially the most profitable is the forex exchange.

The maximum profit to make speculative investments in asset price fluctuations that occur most often and have the maximum amplitudes. In other words, the more active, Äúgoods, AU increase in the price and cheaper in the unity of time, the more approaches to the speculator. Today, the individual investor or speculator has access to virtually every financial market, including international. Perhaps the most volatative from the most accessible is the futures market. Price fluctuations on individual articles in the most active days may exceed 10%. However, the greatest possible profits from the investor ISN, AOT restricted to this limit.

Trade in the urgent market, it is possible to make transactions, such as $ 100,000, leaving only 15-20% of this amount. That’s like starting in sales and contracts of $ 20,000 each to 100 000 percent of profits and costs of a 5% profit of your capital to provide purchase. Therefore, 10 percent of the increase of prices of capital may be increased in a time and a half.

The forex market is a virtual trading platform 24 hours a day activities are made on the currency markets, buying and selling. It is the most liquid market on a volume and a planet. Today on the forex market that anyone can get a small capital access. Unlike the futures market exchange rate fluctuations are absolutely negligible. For example the maximum disorder of the day quotes from some euro / US dollar (EUR / USD) this year is set at March 1917 and formed only 2.38%. For the exchange market, the lot. The average amplitude days for EUR / USD in 2003, formed about 0.9%. So manage to catch Äúbottom, AU and Äúcrest, AU is almost unreal.

It is possible for a good result from Äúride, AU half of this wave, which is on average 0.45% for one day. Profit is absolutely unimportant. However, Forex is possible to enlarge, for example, in 100 times, using so-called credit shoulder, AI borrowed the money to the customer by the bank or broker. In this case, any movement of the market in your party will double your capital at 1% (without cost). And some companies offer more, Äúbig shoulders, AU. Parallel movement of the market against your position (up or if you sell short-term rates down when trade is conducted on the increase) at 1% can cause loss of capital to complete. Why forex is the most risky financial market. And at the same time, it is potentially very lucrative market.

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