Forex Indicators
forex questions?
When I open an forex account of $1000, does it mean that I have to use leverage in order to start a trade, because the minimum amount that you can trade is 0.1 lot. Also, what is the 10 most important economic indicators that will affect the currency.
Public Comments
- yes, forex trading normally uses a 1:100 ratio. the magnitude of such FOREX trade is that, in order to make the deal, only a proportional amount is needed (the COLLATERAL, or the MARGIN). if the currency pair exchange rate has changed by some percentage, the value of the MARGIN invested would accordingly change, however - in a much higher proportion. In fact, the actual change onto the Forex trader's investment (the MARGIN they deposited), will be the nominal change occurred to the exchange rate, multiplied by the MARGIN ratio (the leverage). a variety of economic and political conditions affect currency prices, but probably the most important ones are interest rates, inflation, and political stability. sometimes governments actually participate in the market, either by flooding the market with their domestic currencies in an attempt to lower their prices, or, conversely, by buying in order to raise their domestic prices. you can visit this site and register to get a free ebook and a demo account for you to practice. you can also avail of the services of a personal Account Service manager who can guide you, work with you on the trading floor and answer all your technical questions.
- Some brokers allow you to trade "micro lots". In this kind of brokers you can trade the minimum of $1000 per trade. So, if you don't want to use any leverage this is a good choice for you. Most brokers don't offer micro lots. They have just mini lots, and in this case you'll always use leverage if you have $1000 in your account. Most beginners lose money because they use too much leverage, so it's great to see that you're careful about this point.
