Sunday 27 January 2013

Trading Margin Forex

Trading Margin FX;

When trading FX on margin, the dealing prices quoted to you are directly correlated to those prevailing in the interbank foreign currency market. You are, therefore, gaining access to the professional currency market at the wholesale dealing spreads, without being a major corporation, bank or financial institution and without the need for interbank credit lines. A client is provided with two prices: a bid and an offer. This is referred to as the spread and depends upon the size, volatility and the currency being quoted. The quotes are valid only for a short time.

Since the mid 1990s, with the advent of online foreign exchange trading on margin, clients now have the advantage of trading on live streaming prices. This transparency and ease of dealing has accelerated the growth of currency trading speculation and, essentially, given the retail trader access to a huge market for speculation.
Note: CMC Markets is the world pioneer of online margin FX trading. CMC Markets executed the very first online margin FX trade in 1996 and was the driving force behind retail investors accessing global currency trading on interbank spreads, previously only available to major institutions.
 

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