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How to Fund Your Forex Trading Account

forex trading|forex trading

How to Fund Your Forex Trading Account

There are many ways to fund your forex trading account. Using a micro account, you can trade up to $1,000 of currencies with a single lot. The main benefit of this type of account is that it allows you to invest small amounts of money, without incurring any fees. Forex trading has the lowest risk of all investment types. You can fund your account through online sources, making the process easier than ever. Before you begin trading, make sure you have a firm understanding of the basics of forex trading.

Forex trading involves two currencies: the base currency and the counter currency. EUR/USD is the most common currency pair traded. The price of a currency pair is quoted in the bid and ask price. The price quoted is equal to the amount of currency purchased in US dollars. There is a difference between the buy and sell price, which is called the spread. Traders make their profits by gaining more currency than they initially put in. A typical trade will yield a profit of around 10%, and the amount they lose is the same as the amount they borrowed.

The currencies traded on the forex market change value daily. This makes it a great investment opportunity. Traders profit from these currency changes, and the forex market is open twenty-four hours a day, seven days a week. With a global trading volume of over $6.6 trillion, forex is the largest financial market on earth. In contrast, the New York Stock Exchange has a trading volume of about $1 trillion. Forex traders are active speculators, and can be profitable.

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