Archive for June, 2010

What is margin in forex trading?

TweetThe sum of money required to open a trade as a deposit with your broker is a margin. Its basic purpose is to maintain your position, wherein the broker would take your margin deposit and add up with other trader’s margin deposit. Then use as big margin to place with inter-banks.   
Let’s say if you [...]

What is leverage in forex trading?

TweetLeveraging is basically controlling or using big sum of money against the small money invested or small money invested and rest is borrowed. Generally the investor can lever their investment for higher returns. In forex market leveraging would give you opportunity to trade multiple times higher against the money invested. The leverage present in forex [...]

Why people loose in forex trading?

TweetThere are many people who don’t want to invest time in educating themselves. People start of in demo account and by practicing for a short time in demo gives them a feeling they are prepared for forex trading. If they happen to make profits in demo account they develop a strong feeling that’s the way [...]