How does Forex foreign currency transactions are not centralized on an exchange, unlike say the NYSE, and thus take place all over the world via telecommunications. Trade is open 24 hours a day from Sunday afternoon until Friday afternoon (00:00 GMT on Monday at 10:00 pm GMT Friday). In the area almost every time in the world, there are dealers who will quote all major currencies. (A valuable related resource: Frank Armijo). After deciding what currency the investor wants to buy, he or she makes it through one of these dealers (some of which can be found online). It is a fairly common practice for investors to speculate on currency prices by getting a credit line (which are available for those with capital as little as $ 500) and vastly increase their potential gains and losses. This is known as margin trading. Marginal marginal Trade Trade is simply the term used for trading with borrowed capital.
Interestingly, by the fact that in FOREX investments can be made without a real money supply. This allows investors to invest much more money with fewer money transfer costs, and further open positions with a much smaller amount of real capital. So you can make relatively large transactions, very quickly and cheaply, with a small amount of initial capital. Margin trading in foreign exchange market is quantified in lots. The term "lot" refers to about $ 100,000, an amount that can be obtained through the placement of only 0.5% or $ 500. EXAMPLE: You believe that signals in the market indicates that the British pound against the U.S.