Forex (Foreign Exchange) is the market where national currencies are traded against one another.
Modern information technologies have enabled individual investors (like yourself) to trade Forex online, creating off-exchange or over-the-counter currency trading (OTC Forex).Forex is one of the largest markets in the world. With 1 to 3 trillion US dollars traded every day, Forex trading volumes are 6 to 8 times larger than the trading volumes of all the stock exchanges worldwide combined.
Global currencies constantly fluctuate, but these fluctuations are not always significant. To multiply the buying power, leverage is offered on the OTC Forex. ForexInvest offers leverage of up to 100:1. This means that for every dollar you invest, you receive the purchasing (or selling) power up to 100 units of another currency.
Leverage multiplies your purchasing power, which increases the potential for profit, but may also increase your risk exposure. When it comes to financial management, profits and risks are intrinsically related.
The Forex market, just like any other financial market, can be risky if one does not follow a conservative trading strategy. Markets can move against you, just like in stocks or futures trading, and you can lose your entire investment. Therefore, you should not invest more than you can afford to lose. ForexInvest does not recommend trading with a leverage of higher than 20:1, and invites you to follow our unique training program, which consists of 6 hours of online video training and practice trading on a demo account with 100,000 virtual dollars in it.
The forex market allows you to buy and sell currencies against each other and speculate on the differences in exchange rates. Making a transaction on the Forex Market is simple: the procedures are identical to that of any other market so switching to trading currencies is straightforward for most traders.
The Forex Market, based on ‘spot’ transactions, is unique in comparison with all other global markets.This is because trading takes place 24 hours a day, 5 days a week. Financial centers are open for work, and banks and other organizations exchange currencies in different parts of the world for different purposes.
Therefore, trading never stops apart from a short break during the weekend. Early closings are possible depending on calendar arrangement such as, for example, Christmas or new year’s eve.
A margin deposit is not, as many traditional traders suggest, the payment in cash for purchasing market shares. A margin is in fact a guarantee or a trust deposit, providing protection from losses during a deal? It allows traders to open positions on amounts that greatly exceed their account limits and so increase their buying power. We offer a 1% margin (or 1:100 leverage), which means you can control 100 times your deposit in the real market.
If the funds in the account, in the course of trading, fall below the prescribed margin, your positions will be closed automatically without prior notice. Using this system, the client’s account cannot go overdrawn even under volatile, fast-changing market conditions.
The formula for calculating margins is as follows: (account balance + profit/loss) : open position = the margin
For the sake of transparency and unlike any other online broker we actually have a complete explanation of applied cost of carry on behalf of the market or the customer on open positions held overnight. This overnight cost of carry is presented as a simple flat fee either paid or charged on a customer's account. This process makes for extremely simple statements and greatly increased executional transparency since we do not modify the original price of the position entered into by the customer.