| Leverage, Spreads, Margins |
Our friends at GFT Forex offer the following currency pairs:
OVER 120 CURRENCY PAIRS AVAILABLE
GOT SIGNALS? CLICK HERE FOR MORE INFOMARGINS:Trading in the currency markets requires a trader to think in a slightly different way also about margin. Margin on the forex is not a down payment on a future purchase of equity but a deposit to the trader's account that will cover against any currency-trading losses in the future. A typical currency trading system will allow for a very high degree of leverage in its margin requirements, up to 400:1. The system will automatically calculate the funds necessary for current positions and will check for margin availability before executing any trade.Trading in the spot currency markets provides advantages over trading currency futures contracts. One of the main advantages for traders trading spot currencies is the margin rate or leverage that clients are given. In spot currency trading, customers receive one low margin rate for trades done 24 hours a day. In currency futures trading, the client has one margin rate for "day" trades and one margin rate for "overnight" positions. This can become a hassle for traders and decreases the overall tradability of the currency futures markets. Margin rates in spot currency trading vary from around 1 to 5 percent depending on the size of transactions a particular trader initiates. Global Forex Trading's spot currency trading gives the customer one rate all the time, no hassles and no margin calls. One rate so that the trader can manage their own risk efficiently and simply. We offer leverage of up to 400:1 depending on account size. Sign Up for the Vanguard Forex Trading Strategy Email on the side navigation.
ROLLOVERIn the spot forex market, trades must be settled within two business days. For example, if a trader sells a certain number of currency units on Wednesday, he or she must deliver an equivalent number of units on Friday. But currency trading systems may allow for a "rollover", with which open positions can be swapped forward to the next settlement date (giving an extension of two additional business days). The interest rate for such a swap is predetermined, and, in fact, these swaps are actually financial instruments that can also be traded on the currency market. Where is the market heading? CHECK OUT PROSIGNALSIn any spot rollover transaction the difference between the interest rates of the base and counter currencies is reflected as an overnight loan. If the trader holds a long position in the currency with the higher interest rate, he or she would gain on the spot rollover. The amount of such a gain would fluctuate day-to-day according to the precise interest-rate differential between the base and the counter currency. Such rollover rates are quoted in dollars. Rollovers, however, will not affect traders who never hold a position overnight since the rollover is exclusively a day-to-day phenomenon. The rollover applies at precisely 5PM EST.DEALING HOURSThe forex market is the largest and most liquid market in the world with over 2 trillion in daily dollar volume transacted. It opens for trading on Sunday(EST) and closes on Friday. During this period of time the market is open 24 hours a day. Open Sunday 5PM (EST) - Close Friday 5PM |
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