Posted on 17 September 2008
Understanding Forex Trading
Understanding Forex trading begin
s with a quick definition of Forex trading. Forex is an abbreviation for ‘foreign exchange’ the market where currencies are bought and sold. The Forex market is a 24 hour a day market with no central location or facilities. Transactions are typically conducted through a system of electronic trading platforms giving access to anyone with a computer.
Currencies rise or fall in value due to variations in currency exchange rates. These changes are affected by many variables such as political or economic events such as oil prices or more recently the mortgage market. These events can bring about profound changes in Forex markets worldwide.
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Posted on 14 September 2008
Forex Trading On Margin
One of the 
attractive features of forex trading for investors is the ability to trade on margin. While margin trading is highly regulated in the stock and futures markets the forex markets remain decentralized and the amount of margin allowed is set by the brokerage firms themselves.
If an investor uses a margin account they are borrowing to increase the size of their account and achieve greater returns on their investment. Once an investor has found a broker a margin account is set up. In essence the investor is taking a short term loan from the broker and the funds can then be used to invest in and trade currencies. The investor sets up an account and the margin percentage is then negotiated between the broker and investor.
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