Currency Exchange Foreign
The foreign currency exchange is unlike any other market in the world. In the Forex Market [Foreign currency exchange], you're able to trade 24 hours per day, six days per week. Unlike the American equity markets, in the foreign currency exchange market, you're able to take advantage of global economic news releases. While the stock market is closed, you can be online, trading major announcements.
Nearly $3 Trillion dollars is exchanged in the foreign currency markets each day. When compared to the $30 billion dollars of combined daily volume in the American equity markets, you can easily see why Forex is so liquid. With so much money changing hands, news announcements can have a drastic affect on the foreign currency markets. When the US releases its NonFarm Payroll each month, traders in Asia, Europe, and the United states are reacting to the numbers. The combined volume of all these regions can cause significant movements- in some cases the GBP or Euro may move as much as 3 cents off of an economic release.
Another significant characteristic of the foreign currency exchange market is ability to use leverage. FX Trading offers its clients leverage as high as 400:1. This industry leading leverage allows you the potential to make significant gains off of small movements in the market. With 400:1 Leverage, you only need $250 to open one standard lot. If the GBP moves 1 cent and you're on the correct side of the trade, you'll make $1,000. With our 400:1 leverage, that's a 400% return off of a 1 cent movement.
To learn more about FX Trading's services or account preferences, visit the pages above that discuss spreads, leverage and other features like negative balance protection. If you'd like to practice trading the foreign exchange markets, Open a Demo Account.
FREE $50,000 Spot Demo Acct
