exchange is exciting and potentially very profitable, but there are also
significant risk factors. It is crucially important that you fully
understand the implications of margin trading and the particular
pitfalls and opportunities that foreign exchange trading offers. On
these pages, we offer you a brief introduction to the FX markets as well
as their participants and some strategies that you can apply. However,
if you are ever in doubt about any aspect of a trade, you can always
discuss the matter in-depth with one of our dealers. They are available
24 hours a day on the Saxo Bank internet trading system, SaxoTrader.
The benchmark of its service is efficient
execution, concise analysis and expertise - all achieved whilst
maintaining an attractive and competitive cost structure. Today, Saxo
Bank offers one of Europe's premier all-round services for trading in
derivative products and foreign exchange. We count amongst our employees
numerous dealers and analysts, each of whom has many years experience
and a wide and varied knowledge of the markets - gained both in our home
countries and in international financial centres. When trading foreign
exchange, futures and other derivative products, we offer 24-hour
service, extensive daily analysis, individual access to our Research &
Analysis department for specific queries, and immediate execution of
trades through our international network of banks and brokers. All at a
price considerably lower than that which most companies and private
investors normally have access to.
The combination of our strong emphasis on
customer service, our strategy and trading recommendations, our
strategic and individual hedging programmes, along with the availability
to our clients of the latest news and information builds a strong case
for trading an individual account through Saxo Bank.
Terms of trading are agreed
individually depending on the volume of your transactions, but are
generally much lower in cost when compared to banks and brokers. Your
margin deposit can be cash or government securities, bank guarantees
etc. Large corporate or institutional clients may be offered trading
facilities on the strength of their balance sheet. The minimum deposit
accepted for an individual trading account depends on the account type.
Trade confirmations and realtime acount overview are built into
SaxoTrader, while further account information can be produced in
accordance with your specific requirements.
These currencies are traded in pairs, i.e., Euro and Yen, US Dollar and
Euro. Many people have many reasons why they opt to trade currencies.
The daily profit of 5% received from governments and businesses that
trade services and/or products in a different country or should change
turnovers made in foreign money into their local money. The bulk of the
profit, about 95%, goes to exchanging for revenues or assumption. This
market is not easily influenced by any external factor. It is also
famous for its liquidity. Money freely flows from this market since
millions of dollars can get in and out of it each day. It is also
considered liquid due to the fact that traders can just open and close
positions in a wink of an eye. This could be attributed to Forex being
one of the most coveted market.
Who Can Forex?
Forex participants can vary a lot. From long term investors to large
credit line users, Forex is very marketable. But its constant minimal
daily rise and fall magnetizes investors with various trading
techniques. This makes Forex consistently exist as a very interesting
Tools of the Trade
Anyone can go with this Forex flow 24 hours a day, 7 days a week, 365
days a year. Yes, this currency market is that possible. Basically one
essential tool in doing this business is having a PC and an Internet
Globally, Forex happens via
telecommunications. Trade is open starting Sunday afternoon to Friday
afternoon. The investor would choose what currency to purchase through a
wide selection of dealers. Some of these dealers could be found online.
If an investor has limited capital, say $500, he can speculate on the
prices of currency through acquiring a credit line. This is a common
trading practice called marginal trading. It is pursued to increase the
possible gains and losses one investor can incur.
Marginal Trading can be one attractive
option since it actually means one can work out Forex immediately
without shelling out money directly from one’s pocket. This decreases
the cost of money transfer. Bigger transactions can be carried out more
easily and quickly with this kind of method. “Lots" is the unit used in
this exchange market. It refers to almost $100,000 that can be earned
with an initial capital of $500. What can you say?
Two kinds of analysis strategies are recommended to succeed in your
Forex endeavor. Technical analysis is one of the fundamental techniques
that are favored by small to medium sized trade players. The activity of
the price chain is sad to predict the market and currency fluctuations.
The price chain the major aspect of Forex that needs ample consideration
in this technique. To master this strategy, an investor needs to learn
how to make the most out of the knowledge of the lowest and highest
prices of a currency, opening and closing prices, and the transaction
Fundamental analysis relies on the country
currency’s present situation. Its political dealings, economy and other
hearsays that might influence the currency must all be taken into
consideration. The predictions must be also based on the Forex players’
Like any investment, Forex is likened to
gambling. One needs to know how to play his cards before jumping into
this kind of business. E-books and other online sources are the most
accessible form of educating oneself on this turf. Be armed with
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