Wednesday, February 15, 2012

What is Forex?

Forex (Foreign Exchange) is the new trading system alternative in terms of the total cash value traded, and any person, firm or country may participate in this market. The forex market is open 24 hours a day, five days a week and currencies are traded worldwide among the major financial centers of London, New York, Tokyo, Zürich, Frankfurt, Hong Kong, Singapore, Paris and Sydney.
Every activity in forex is complex, risk, and unpredictable. So, it means forex is only fit to a man with the high business skill. Forex trading and investment inderivatives can be very speculative and may result in loses as well as profits. You should carefully your financial situation and consult your financial advisor as to the suitability to your situation prior to making any investment or entering into any transactions. You should be aware of all the risk associated with foreign exchange trading, and seek advice from an independent financial advisor if your have any doubts.
In other words, forex is not suitable for all investors. Most importantly do not invest money that you cannot afford to lose. If you fail to meet any margin requirement, your position may be liquidate and you will responsible for any resulting losses. To manage exprosure, employ risk-reducing strategies such as "stop loss" or "limit orders".

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