Forex, or Foreign Exchange, is the simultaneous
exchange of one country’s currency for
that of another. GOLDBERG FOREX GROUP provides
foreign exchange for the purpose of investor
speculation. The investor wishes to purchase
or sell one currency for another with the hope
of making a profit when the value of the currencies
changes in favor of the investor, whether from
market news or events that take place in the
world. This market of exchange has more daily
volume, both buyers and sellers, than any other
in the world. Taking place in the major financial
institutions across the globe, the forex market
is open 24-hours a day.
Buying/Selling
In this market you may buy or sell currencies.
The objective is to earn a profit from your
position. If you have bought a currency, for
example, and the price appreciates in value,
then you will earn a profit by closing your
position. When you close your position, sell
the currency back in order to lock in the profit,
you are in actuality buying the counter currency
in the pair. By trading currency pairs, one
currency valued against another, a rate of worth
has been established. After all, a country’s
currency has value only relative to the currency
of another country.
Quoting
Conventions
Currencies are quoted in pairs. The first listed
currency is known as the base currency, while
the second is called the counter or quote currency.
In the wholesale market, currencies are quoted
using five significant numbers, with the last
placeholder called a point or a pip.
Like
all financial products, FX quotes include a
"bid" and "ask". By quoting
both the bid and ask in real time, GOLDBERG
FOREX GROUP ensures that traders always receive
a fair price on all transactions. As in any
traded instrument, there is an immediate cost
in establishing a position. For example, USD/JPY
may bid at 131.40 and ask at 131.45, this five-pip
spread defines the trader’s cost, which
can be recovered with a favorable currency move
in the market.
Margin
The margin deposit is not a down payment on
a purchase of equity, as many perceive margins
to be in the stock markets. Rather, the margin
is a performance bond, or good faith deposit,
to ensure against trading losses. The margin
requirement allows traders to hold a position
much larger than the account value. GOLDBERG
FOREX GROUP’ s online trading platform
has margin management capabilities, which allow
for this high leverage.
In
the event that funds in the account fall below
margin requirements, the GOLDBERG FOREX GROUP
Dealing Desk will close all open positions.
This prevents clients' accounts from falling
into a negative balance, even in a highly volatile,
fast moving market.
Rollover
For positions open at 5pm EST, there is a daily
rollover interest rate that a trader either
pays or earns, depending on your established
margin and position in the market. If you do
not want to earn or pay interest on your positions,
simply make sure it is closed at 5pm EST, the
established end of the market day.
What
Every Currency Trader Should Know
The forex market is one of the most popular
markets for speculation due to its enormous
size, liquidity, and tendency for currencies
to move in strong trends. An enticing aspect
of trading currencies is the high degree of
leverage available. GOLDBERG FOREX GROUP allows
positions to be leveraged up to 100:1. Without
proper risk management, this high degree of
leverage can lead to enormous swings between
profit and loss. Knowing that even seasoned
traders suffer losses, speculation in the forex
market should only be conducted with risk capital
funds that if lost will not significantly affect
one's personal financial well being.
The
GOLDBERG FOREX GROUP Mini account was designed
for those new to online currency trading. There
is a smaller deposit required to open an GOLDBERG
FOREX GROUP Mini account and trading sizes are
1/10th the size of a regular account. The smaller
trade size enables traders to take smaller risks.
The GOLDBERG FOREX GROUP Mini is intended to
introduce traders to the excitement of currency
trading while minimizing risk.
Free
Demo:
Test
drive our trading platform FREE for 30 days
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