Forex Markets

Written by BK Shaw
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The forex markets are exciting because of their quick sometimes violent movements. In a cash market, you're not as excited unless you have a million dollars to play with. In a leveraged market, you don't have to have the liquid cash funds. For as little as 10 thousand dollars on the global spot forex market, you can be leveraging a million Euros. Every penny fluctuation between the two currencies equates to big profits. By the same token, a move in the opposite direction can result in big losses.

When the forex markets move against you, there are two choices. Wait it out because markets go up and down, or cut your losses short and exit the game. It can be a tough decision. Imagine someone jumping off a cliff on a bungy cord; they glide down before snapping right back up. The markets can behave in much the same way, and who wouldn't want to profit from the move back up?

If you are inexperienced at trading in these forex markets, I highly recommend working with a broker. The broker will not be flawless; they don't have crystal balls, but they are motivated to make you money. After all, they want your next trade to be bigger than the last trade. The more money you have to play with, the bigger their commissions will be!

Learning about the Forex Markets

Watch them! Observe world events and economic developments that affect currency. Focus on one currency pair, and then gradually, you'll see how they are all inter-related.

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