Posts Tagged ‘forex trading’
The modern currency trading technologies enable the taking of big profits in a short period of time: brokers provide their clients with leverages; client terminals support the function of automatic trading etc. Indeed, with Forex it is possible to become rich in a moment but it is also possible to lose everything at once.
Let us discuss the main market and non-market risks.
Exchange rates volatility
One of the main properties of Forex is its volatility that reflects the dynamics of prices. The market is considered as volatile if there are frequent and significant price fluctuations. Price spikes can lead to financial losses. While opening a deal a trader should consider that prices are subject to various fluctuations. Therefore, it is necessary to control the opened positions or to place limit orders.
Dynamics of prices is affected by various economic and political events as well. The release of breaking news can provoke significant price changes. Moreover, from time to time the central banks carry out the currency interventions in order to influence the exchange rate of the national currencies. Interest rates also play an important role as they can lead to the changes in exchange rates.
The risk of using a leverage
Leverage serves as a comfortable and effective trading tool. The profitability of deals can be significantly multiplied if you use the assets borrowed from a broker. The higher the profit is, the greater the risks are. The losses cannot exceed the equity of a trader, but if a trader uses a big leverage, then even the slightest price movement in the opposite direction can reduce the deposit to zero.
In order to control deals and to find a right moment for making a buy or a sell deal, a trader needs a computer and a constant access to the Internet. There is always a possibility of unexpected power cutoff, equipment errors or disconnection. As a rule such alternative devices as smartphones, laptops and tablet computers can be a good solution.
Unfortunately, while trading on Forex there is a risk to choose an unreliable broker. But it is quite easy to find a reliable company as there are lots of comments in the Internet. While opening an account you should learn the information concerning the organization, check out the presence of all necessary licenses, read attentively the trading conditions. These measures are essential for security.
Prestigious brokers are not really interested in losses of their clients. That is the reason why they try to ensure the maximum transparency of their activity and propose the effective trading instruments. Reliable companies neither deliberately change the exchange rates nor play against the client! Moreover, you can detect such “bucket shops”, you just need to be cautious.
Available trading and high speed of deals execution can seem easy and simple. If you consider the trading as an exciting game, you can pay for this with your own money. A trader’s decision is influenced by various psychological factors. Therefore, it is necessary to learn how to control your emotions.
Added by InstaForex Staff
The top broker in Asia InstaForex Company arranges the Grand Dinner in Malaysia for all customers and partners. The event will be held at Corus Hotel, Jalan Ampang in Kuala Lumpur on November 26, 2011.
InstaForex guests from Melaka, Negeri Sembilan, Johor and Kelantan may take advantage of free and comfortable InstaForex buses to get to the Grand Dinner.
The event is sure to be entertaining with a lot of opportunities to meet interesting people and take part in Lucky Draws with different prizes such as iPads and iPhones, Samsung LCD TV set and Samsung Galaxy Tablet PC of the latest design. The lucky owners of new live accounts deposited with up to 5000 USD will also be determined among the visitors! The prize pool of the event totals to unimaginable 21 000 USD. Moreover, everyone will have a chance to enjoy a magnificent gala-concert with top club singers performing specially for you.
For further inquires about InstaForex Grand Dinner 2011 in Kuala Lumpur, please, use hotline numbers below:
Negeri Sembilan & Melaka
+1-800-88-2528 (toll free)
If you have any questions please contact our manager by e-mail: firstname.lastname@example.org
InstaForex Company looks forward to seeing you at InstaForex Grand Dinner 2011!
On June 6 in Lahore, one of the biggest Pakistan cities, five-star hotel Pearl Continental Lahore hosted a reception dedicated to the anniversary of cooperation of InstaForex Company and one of local Introducing Brokers – Muzammil Hussain Bhatti.
Dozens of traders gathered to the reception. In a friendly atmosphere they discussed the advantages of trading with InstaForex and other issues related to financial markets. Besides, InstaForex representatives told the guests about the company’s novelties and surprises prepared by the international Forex broker for the nearest future.
InstaForex Company management would like to thank its partners for professional high-quality work and hopes for further fruitful cooperation!
You can find a mini photo report of the event here.
Added by Ekaterina Abramova,