http://www.pipstoday.com Mon, 11 Feb 2013 09:40:33 +0000 en-US hourly 1 http://wordpress.org/?v=3.5 http://www.pipstoday.com/2012/12/10-facts-you-must-know-on-online-forex-trading/ http://www.pipstoday.com/2012/12/10-facts-you-must-know-on-online-forex-trading/#comments Sun, 02 Dec 2012 13:49:39 +0000 Alfrick Opidi http://www.pipstoday.com/?p=631 Online forex trading is increasingly becoming an investment of choice for most people. The foreign exchange market (forex or currency market) offers attractive investment opportunities for investors of all walks of life. Here are some 10 facts you must know on online forex trading.

1. Online forex trading is not a get-rich-quick scheme. Most people start engaging in the business of trading currencies with the thought that they’ll get rich overnight and forget all their problems. However, success in forex trading requires a lot of dedication and discipline.
2. The forex market virtually does not sleep; the market is open for 24 hours a day, apart from weekends. This means that you can place your trades according to your schedule.
3. The forex market is the largest financial market in the world. It is estimated that the market has a daily turnover of more than $4 trillion.
4. Online forex trading has high level of leverage; therefore, you can execute orders that are worth more than the cash in your trading account. Typically, most forex brokerage companies offer high leverage to their customers, of up to 500:1.
5. The forex industry has several regulatory agencies that guard the participants from malpractices. Worth mentioning, the most common ones are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC).
6. It is fairly easy to predict the movements in the forex market. It is of essence to note that the price of currencies usually repeat themselves in foreseeable cycles; thus, you can get good returns if you have a good strategy for navigating the markets.
7. Online forex trading provides equal potential to benefit irrespective of the direction the market takes. Whether the market is falling or rising, you can still identify a good trade opportunity and harvest some pips.
8. Online forex trading has low transaction costs and no commission. In contrast to other traditional financial markets, you are not charged a fee for entering and exiting positions. The cost of executing trades is already built into the price, and it is what is referred to as the spread.
9. Starting to participate in online forex trading is fairly easy. As compared to other financial markets, you will encounter fewer obstacles when you want to be a forex trader.
10. There are various factors that cause the exchange rate of currencies to fluctuate. Some of these are interest rates, political factors, speculation, and economic data. And, to succeed in online forex trading, you need to have a grasp of these factors.

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