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I - T R A D E F X |
Forex Trading |
The Foreign Exchange is the largest exchange market in the world. Off-exchange foreign currency futures contracts are not regulated by an exchange. With the prospect of quick, hefty profits, and the explosion of internet technology and availability, trading on the FOREX has dramatically grown in popularity among investors of all types. But trading in this market isn’t easy. As with any other securities market, the successful trader must become knowledgeable and savvy with regard to the currency that’s being traded as well as the venue in which he or she is operating.
In the forex market, also called the over-the-counter (OTC), market, a retail customer trades directly with a counterparty and there is no exchange or central clearinghouse to support the transaction. Off-exchange trading is subject to limited regulatory oversight.
FOREX trading is a very specialized form of day trading. (Day traders invest by buying and selling securities, or opening and closing their market positions, on the same day.) Because of the high margins available in FOREX, investors can control large amounts of currency. This leverage creates the potential for huge profits as well as huge losses. The would-be FOREX trader must remain aware that, just as with any other investment vehicle, financial loss is always a possibility.
Like many other investments, off-exchange foreign currency trading carries a high level of risk and may not be suitable for all investors. In the off-exchange, also called the over-the-counter (OTC), market. A retail customer trades directly with a counterparty and there is no exchange or central clearinghouse to support the transaction. Off-exchange trading is subject to limited regulatory oversight.
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