Archive for November 18th, 2008

Understanding risk in the forex When you buy a currency, it’s different than buying a stock. When you buy shares of a stock, the maximum amount you can lose is the face value of your investment. You buy 100 shares of a stock at $10 per share, and your maximum loss is capped at $1,000

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7. Margin and Leverage

This is a topic most traders are passionate about. Because the retail forex market is dominated by short- and medium-term traders, most forex dealers have a focus on quality and ease of execution to cater to that trading style

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4. Choosing a Dealer

Supply and demand drives the forex market The Forex market, just like every other market in the world, is driven by supply and demand. In fact, understanding the concept of supply and demand is so important in the Forex market that we are going to take a step back into Economics 101 for a moment to make sure we’re all on the same page

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2. Supply and Demand