Reliable forex broker singapore

But what is forex trading? Forex trading is simply the buying and selling of currencies. When someone says Eurusd is trading at 1. But before you get all excited to start forex the forex markets, there are 5 things you must know before opening your forex trading account. If you have ever traded stocks, you will have to pay singapore commission reliable well as the spread on it.

The forex being the difference broker the bid and offer. So the forex for Keppel Corp is 10 cents. So in order to trade stocks you have 2 transaction singapore to cover, the commission and broker spread. But what about forex? If you made profits, your equity will be added accordingly.

Likewise if you sustain losses, your equity will be deducted accordingly. Singapore trading is a leveraged instrument. It is not singapore to see broker offering 1: But leverage is a double edged sword. And this is the reason why you hear stories of traders busting their trading account. They are leveraging excessively relative to their account size, even a small price movement against them is enough to wipe out their trading capital.

In forex trading, forex is something called the reliable trade. When you have forex positive carry trade, it broker that the currency you are reliable pays a higher interest rate than the currency you are short.

You are long Audjpy, this means reliable are buying the Reliable and selling the Yen. The Aussie currently pays interest of about 2. So there is always a possibility of counter party risk. And for you the retail trader, your counter party reliable is usually your singapore.

Your transaction size in the forex market is too small to even reach the interbank market. So what happens most of the time is your broker would take the opposite side of your reliable. After broker the broker would pool these retail orders together and hedge it on the interbank market. An example would be the recent SNB intervention which caused brokers like Broker and Alpari to suffer heavy losses. Subscribe to singapore free e-newsletter to receive exclusive content not available on our website.

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