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    Global Banking & Finance Review® is a leading financial portal and online magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management.
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    Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

    Trading

    Posted By Gbaf News

    Posted on March 14, 2013

    Featured image for article about Trading

    It is a pip and its value is the equivalent of 0.0001 of a dollar, in most currency pairs, and it is the smallest increment on the Forex market. Now you might find yourself wondering why anyone would possibly think chasing pips was ever going to be a profitable endeavor and what the Forex market actually is. With almost $2 trillion dollars being exchanged daily on the forex market those pips can quickly add up to big profits—or big losses—really quick. Making the Forex market one of the most exciting, volatile, and engaging markets in the investment world.

    The FOREX market (Foreign Exchange Market) is where corporations, nations, and investors can exchange money. For example, if a US corporation needs to fund their payroll account for an office in Italy they need to convert US dollars into Euros. Keep in mind that currencies are not typically the same value. The forex market is larger than the total amount of the stocks and futures markets combined and continues to gain in popularity. In Forex there is neither physical location nor a central exchange so it operates 24 hours a day, moving across the time zones from one financial center to another.

    Until recently, retail Forex investors did not exist. Because of the size of the transactions, traders on the Forex used to be limited to large investment firms, central banks, etc. Now, however, a Forex investor can typically secure a position for as little as $1,000 (or 1/100th of the total transaction amount). However, because there are always interest charges associated with any leveraged position that means that an investor can quickly lose their capital if things swing the wrong way.

    Remember those pips? Although a pip is a very small number, the sheer size of the lot means that a 1 pip movement equals $10 ($100,000 X .0001). Allowing investors to get in and out of a position very quickly if the price fluctuates by only a few pips and still make a profit (Forex scalping). While it is possible for a Forex trader to double their investment in a very short period of time—but they can lose it just as easily!

    Traders try to make a profit by trading currencies in pairs when the prices go up and down. Anyone can learn how to trade in FOREX. The importance of proper education and training before entering live trading cannot be overestimated to obtain any amount of success. Traders use a number of strategies to help them determine when to enter and exit positions. Taking a forex course, employing a forex mentor and participating in demo accounts can help a trader prepare to enter the market. No one can guarantee success in the market place.There are no commissions in FOREX and traders are able to interact directly with the market. It is possible to begin trading in the Forex market with very low financial investment via a mini account. Make sure to research the brokerage firm to find one that best meets your needs. Trading currencies on the Forex is so popular because the action is non-stop and the opportunity for profit is unlimited. However, because of the margins and volatility of the market itself, the Forex can make or break an investor quickly.

     

     

     

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