Online Currency Trading

The Foreign Exchange market, also referred to as the "Forex" market, is the largest financial market in the world, with a daily average turnover of approximately US$1.5 - US$1.9 trillion. Forex is the simultaneous buying of one currency and selling of another. The world's currencies are on a floating exchange rate and are always traded in pairs, for example EURO/USD or USD/JPY.

Who Are The Participants In The FX Market?

The Forex market is called an 'Interbank' market due to the fact that historically it has been dominated by banks, including central banks, commercial banks, and investment banks. However, the percentage of other market participants is rapidly growing, and now includes large multinational corporations, global money managers, registered dealers, international money brokers, futures and options traders, and private speculators.

Margin is required collateral for taking a forex trading position. It allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the forex market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively.

A long position is one in which a forex trader buys a currency at one price and aims to sell it later at a higher price; the investor is benefiting from a rising market. A short position is one in which the trader sells a currency in anticipation that it will depreciate; the investor is benefiting from a declining market.How Do I Manage Risk?

The most common risk management tools in forex online trading is the stop loss order. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the Forex market ensures that stop loss orders can be easily executed.

What Is A Stop Loss Order?

A stop loss order is an order type whereby an open forex trading position is automatically liquidated at a specific price. As an example, if an investor is long USD/YEN at 112.35, they might wish to put in a stop loss order for 111.75, which would limit losses should the dollar depreciate.

Historically, smaller-scale, individual investors have had limited access to the forex market. Major banks, multinational corporations and other participants, trading in large transaction sizes and volumes, have dominated this market for decades. Technology, however, has lowered the barriers of entry and opened up this attractive marketplace to a new breed of forex investors and speculators. Increasingly, forex trading is winning favor as an alternative investment opportunity. The following are some of the benefits of trading currencies vs. trading stocks:

For inquiries please contact:
JP Rodes
FXDotCom Foreign Exchange, Inc.
Unit 803 cityland 10, Tower 2, 6817 H.V. Dela Costa St., Salcedo Village, Makaty City
Tel. #: 813-3273/813-1741
Cel. #:0916-2345131/0908-9529385
e-mail:japerodes_fxdotcom@yahoo.com
or visit our website at: www.fdcmarkets.com