How To Start Trading The Forex Market ? (Part 4 )
How Currencies are quoted and what moves individual currencies?
ONE of the best advantages in FOREX Trading is
The amount of money you need to place a trade (known as “margin”) is all that can be lost !
You have to know, that despite the super-high leverage offered by some Forex brokers up to (400:1); meaning if you put up $ 1000 the broker will allow you to trade like you really have $400.000).
Forex trading is still less riskier than Stock or Futures Trading, where you can loose more than you have deposited in your account.
This type of LEVERAGE does NOT EXIST in the equities or futures market
In the Equities or Futures markets, very often, sudden and dramatic moves occur, against which you cant protect yourself, even by having placed your protective stops.
Your position may be liquidated at a loss, and youll be liable for any resulting deficit in the account.
But because of the FX markets deep liquidity and 24-hour, continuous trading, dangerous trading gaps and limit moves are almost eliminated.
Orders are executed quickly, without slippage...