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Future Investment-Forex

Monday, December 22, 2008

Future Investment-Forex

There are various advantages and various other ways of investing in Forex. The first thing about Forex it is a 24 hr market, except the weekends of course. In this market, you have the US, European and then the Asian market. The great time to trade Forex market is during the over lapping periods. The USA and European markets overlap between 5am & 9am Eastern Time and the Euro & Asian between 11pm & 1am eastern. It is usually the busiest time and best to trade.

There is also risk factor involved in forex trading for the accounts. With trading in futures and options, there might be possibilities of getting margin calls in your account that can wipe you out. If you are caught in a bad trade, you not only lose your money in the account, you might come up with a lot more from your pocket. It can be extremely risking. But not in Forex. Worst-case scenario you can lose what is in you account. However, you would have to do something stupid. Somewhat making a big trade on a Fundamental day and leave it alone. If market takes, a bad shift and you were not there. OOOPS. However, that would not happen with a smart trader.

To learn about trading there are the demo accounts, which is an account some place you can trade using all the right things, platform, charts, and information. However, you are using play money, or what we call paper trading too.

In addition, with Forex you have a mini account. This is designed for instead of needing thousands of dollars to get into it. To open a mini account you require little as $300.00. With mini trading account, of course you will be trading at one- tenth of a trade. In other words, we can say that you controlling 10,000 instead of 100,000.00 these are call lots. Which also means you will only risk 1 tenth too!

So, if you love to learn to investing and not have near the risk you really need to take a closer look at Forex trading.

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