21 Dec
Category: Forex, Currency trading, Financial market, Investing strategies, Money, Finance, Capital
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Certainly possibility to increase the profit by means of the lever is rather attractive but it is necessary to realise that the same lever and in the same degree increases possible losses. Besides working with the small capital we are compelled to be in very severe conditions when should pay to set of intermediaries the considerable sums (a spread, commission fee and bank percent). It is natural as the large capital is always steadier against risks and it receives more attractive conditions for transactions. With the small capital it is not so. Risk to lose it higher and with such capital it is necessary to work cautiously and conservatively. On the other hand the similar situation is observed in all other markets and what of these markets contains the same potential of profit how FOREX? Let’s discass those moments which complicate work at marginal trade. To receive profit to the investor with the small account it needs to catch such currency rate fluctuations which would block a spread, commission fee and bank percent (as a rule, it it is 30-50 points). With the account that average statistical fluctuations within day - 80 points and often more than 100 points, such restriction severe enough. With the big capital it is enough to traders to catch 5-10 points for profit reception for the spread and commission fee essentially is less (the last can be absent in general). Consider also that usually it is not possible to catch completely all day fluctuation of the prices therefore really to catch only 40-60 % of this fluctuation. So small investors on FOREX should be adjusted for work with intermediate term positions (1-4 days) that on the one hand complicates a situation and with another - forces to work more conservatively and consequently less risky. For work in the currency market without the lever and with real delivery you can sell only currency that you have and the sizes of prizes should be measured in millions dollars. At marginal trade you can to open a position as purchase, and sale of other currency having the small account in dollars.
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