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How many of the potential profit and losses in the forex trading?

Monday, December 12, 2016

You can benefit dozens even hundreds of
percent in a month, but you can also go bankrupt in
overnight due to forex. In principle, the High Risk nature of forex
-High Return. so if you're interested in forex trading, be prepared
Fortunately, big and also the great loss.
Actually if you forex trading traditionally,
in the sense of buying foreign currency and save it in the
safe, arguably the potential losses are small. Because Of You
can keep it until prices go up later. so in the
long term investment point of view, the potential loss of forex
can be minimised.
However if Your forex transactions in the context of
trading, in this case in online forex trading, potential
the greater the loss. This is caused in the online forex
It's called the trading with LEVERAGE.
Leverage (which literally levers) is
the ability to use your money greater than
It actually was. Like the Jack or the lever function,
lifting objects heavier with more power
small. For example, the broker provide leverage 1:100, then with
capital $1000, you can trade up to $1000 x 100 =
$100,000.



The magnitude of this leverage varies for each broker. There is the
give a 1:100, ' there were 11200, even up to 1:500.
Brokers generally provide at least 1:100.
In the forex market, as in the Money Changer,
leverage used is 111. Means to Transact
$1000 we need money $1000 as well. With
such transactions in the forex market traditionally requires
a large capital. While in online forex trading, leverage
may mencapai1:100, which means that with a $1000 you can
transaction to $100,000. Next $1,000 or capital
you use this is referred to as margin.
A broker who will spend money on a number of
$100,000 to we use, so we just
have to spend money to bear the losses and
the advantages of the transaction of $100,000 it. Iadi $1,000 it acts
as a guarantee for the use of $100,000.
With leverage, forex transactions in the forex _ online
trading is indeed becoming increasingly attractive. Only with the
$100, you can make transactions up to $10,000. Therefore with
small capital you can profit big. But the downside
forex transactions are also becoming increasingly risky. More and more
the money is used, meaning the potential loss is also getting bigger.
In addition to its forex transaction is a zero sum game.
Namely, there is always a win and some lose. Different
with the stock market, where it could continue to rise along with the
the performance of the company. In forex, currency rates, too much for a-
much for a course. Back and forth in a specified range. Take for example the Rupiah
against the USD, from 2000-2009 kisarannya exist in the 8,000-
13,000.
Once you know that forex is very risky,
especially for small players like us, does the forex should be
have been avoided? Iawabannya dependent on You, if you're ready
menanggunglrisiko and want to learn to manage risk, then
Forex can be one source of your income.

2 comments

  1. Loving this blog, great content and will be coming back to find out more for sure!

    Currency Exchange San Francisco

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