The Rapid Forex Trade Advantage
By Ultimate Trading
How Is A Rapid Forex Trade More Worthy Of Your Valuable Time?
Why spend your time on a
forex trade? Why spend the time and effort to understand a large
and complex market like the Foreign Exchange? Well, mainly for the
chance to make large profits, while incurring low costs. The rapid
forex trade market is a very lucrative market, for a variety of
reasons. Ill go over a few of them in this article.
First, think margin. In the rapid forex trade market, a trader's
money can play with 5 times as much value of product as a futures
trader's, or 50 times more than a stock trader's.
Just like futures and stock speculation, a rapid forex trade has the
ability to control a large amount of currency by putting up a small
amount of margin. However, the margin requirements that are needed
for trading futures are usually around 5% of the full value of the
holding, or 50% of the total value if you are trading stocks. The
margin requirements for a rapid forex trade is about 1%. For
example, the margin required to trade foreign exchange is $1000 for
This can be a very profitable way to trade, but it's important that
you fully understand the risks that are involved in a rapid forex
trade. Always make sure that you know how your margin account is
going to work. Read the margin agreement between you and your
clearing firm carefully. Talk to your account representative if you
have any questions.
The positions that you have in your account could be partially or
completely liquidated if the available margin in your account falls
below a predetermined amount, and you may not get a margin call
before your rapid forex trade positions are liquidated. Because of
this, you should monitor your margin balance on a regular basis and
utilize stop-loss orders on every open position to limit risk.
That covers the profits end, but what about the costs? When you
trade in futures, you have to pay exchange and brokerage fees. A
Rapid forex trade is commission free, a much better scenario.
Currency trading occurs on a worldwide inter-bank market that lets
buyers be matched with sellers in an instant. But even though you do
not have to pay a commission charge to a broker to be matched up
with a buyer or seller, the spread is usually larger than it is when
you are trading futures. And the spread is where the brokerage makes
For example, if you were trading a Japanese Yen/US Dollar pair, a
rapid forex trade would have about a 3 point spread (worth $30).
Trading a JY futures trade would likely have a spread of only 1
point (worth $10), but you would also be charged the broker's
commission on top of that. This price could be as low as $10 for
self-directed online trading, or as high as $50 for full-service
trading. However, this is generally all inclusive pricing. Its a
good idea to compare both an online rapid forex trade and your
specific futures commission charges to see which commission is the
Still not convinced? Consider the fact a rapid forex trade market is
highly liquid, ensuring that a trader will never be trapped in a
position, as you can be in an equity or futures market. Or that it
trades 24 hours a day, allowing a trader to act on major market
events when they happen, rather than waiting for the opening bell.
And last, but certainly not least, it is simply to largest market in
the world. It is not regulated. No central bank can do more than
influence the market. You will never need to worry about government
forex trade is a great alternative to futures and commodities
trading. Unless you are a broker, you will likely want to get some
help with your rapid forex trade. As with any type of trading, there
are always some risks involved, but if you take the time to
understand the rapid forex trade market, and design a trading system
that is right for you, you will be successful.
About To Learn Secrets Most Traders Will Never Know About Profitable System Trading..."
Inside you’ll learn...
to design a winning system from scratch and exactly what
to do to supercharge your current stock trading system!
one ingredient you literally "Drop" into your
stock trading system that can triple your profit!
to use “secret” money management techniques
to minimize your risk.
tools the professionals use and how you can get huge discounts
(charting software, data, etc).
you'll also get a FREE copy of David Jenyns’ complete
Ultimate Trading Systems Course…
Just enter your name & email - then click the “Click
Here For Free Instant Download!” button. (All information
kept 100% confidential). The download details will be
emailed to you immediately.
take your privacy very seriously. My
personal privacy guarantee to you. I respect your privacy
and will never share your email address with anyone. You can
easily unsubscribe at any time. View our Privacy
Policy - David Jenyns Founder of www.ultimate-trading-systems.com