What is Forex?
How Do You Trade Forex?
Now, it's time to learn HOW to rake in the moolah!
When Can You Trade Forex?
Now that you know who participates in the forex market, it's time to learn when you can trade!
Who Trades Forex?
From money exchangers, to banks, to hedge fund managers, to local Joes like your Uncle Pete - everybody participates in the forex market!
Why Trade Forex?
Want to know some reasons why traders love the forex market? Read on to find out what makes it so attractive!
Margin Trading 101: Understand How Your Margin Account Works
A beginner's guide on how margin trading works. If you skip these lessons, you will quickly obliterate your trading account. Guaranteed.
- What is Margin Trading?
- What is Balance?
- What is Unrealized P/L and Floating P/L?
- What is Margin?
- What is Used Margin?
- What is Equity?
- What is Free Margin?
- What is Margin Level?
- What is a Margin Call Level?
- What is a Stop Out Level?
- Trading Scenario: Margin Call Level at 100% and No Separate Stop Out Level
- Trading Scenario: Margin Call Level at 100% and Stop Out Level at 50%
- Trading Scenario: What Happens If You Trade With Just $100?
- Warning: Different Forex Brokers Have Different Margin Call and Stop Out Levels
- The Relationship Between Margin and Leverage
- Margin Jargon Cheat Sheet
Forex Market Structure
Unlike the stock exchange market where a single entity fixes all the transactions and trading rates, the Forex Market structure is decentralized. It means the market which trade trillions of Dollar daily, actually does not have a central marketplace. Forex trades from the multiple small currency exchange outlets which are present around the world. All trading happens on its virtual platform where anyone from giant super banks to an ordinary trader can trade.
Forex Market Structure –
Being a decentralized exchange market place, Forex does not have a fixed committee or agency to set rates; there is no fixed rate which gives the freedom to each Forex dealer to trade as per their preferred quotes. As there are many Forex traders out there, competition between them often heads to give individual traders like us a fair and good deal. FX does not have a fixed hierarchy by rule, but according to the amount traded, there is, of course, a ladder in this market. The topmost place is occupied by the interbank market which includes Super Banks, Centralized Banks, Government agencies which trade through electronic mediums preferably EBS (Electronic Brokering Service) and Reuters Dealing. This ladder then steps down through hedge funds, giant companies and continues to step down with various other private banks, medium and small-sized companies, Forex dealers and last but not the least with traders like me and you. FX market structure is developed with such expertise that everyone who trades over it gets a fair and transparent trading experience.