Forex trading questions?
Monday, June 9, 2014
, Posted by Ryanita at 11:57 AM
Joe
The USD/JPY is trading now at about 80.4900 so how much would it cost me to buy 3000 shares of that currency? Also how much money am i required to have to day trade Forex? Because i know you need like 20 grand to day trade stocks. I have been trading stocks now for a couple months and i have a good trading strategy down using MA stochastic and a couple other indicators but will they still be effective in forex trading? Thank You
Answer
There is no minimum to day trade Forex, except the minimum deposit set by your broker (usually $100 to $2000). There are also no restrictions on shorting.
Forex trades in terms of lots, or notional value. And how much you can buy depends on your account type and leverage. In the US, the maximum leverage is 50:1. So, if you buy 1 mini lot of USD/JPY, you would be shorting 10,000 dollars worth of Yen, and that would cost you 1/50 of that amount, which is $200 of margin. Each pip, or 0.01 movement, would gain or lose approximately $1 depending on the currency.
As another example, if you buy one mini lot of GBP/USD, you'd be buying 10,000 dollars worth of GBP, and each pip would be a movement of 0.0001, which would still gain or lose $1.
Honestly, if you're successful in the stock market, I would stay there. But it wouldn't hurt to try Forex on a free demo account. Forex is cheaper to trade, and doesn't have bear markets in the same sense as the stock market. But it's also much more volatile.
There is no minimum to day trade Forex, except the minimum deposit set by your broker (usually $100 to $2000). There are also no restrictions on shorting.
Forex trades in terms of lots, or notional value. And how much you can buy depends on your account type and leverage. In the US, the maximum leverage is 50:1. So, if you buy 1 mini lot of USD/JPY, you would be shorting 10,000 dollars worth of Yen, and that would cost you 1/50 of that amount, which is $200 of margin. Each pip, or 0.01 movement, would gain or lose approximately $1 depending on the currency.
As another example, if you buy one mini lot of GBP/USD, you'd be buying 10,000 dollars worth of GBP, and each pip would be a movement of 0.0001, which would still gain or lose $1.
Honestly, if you're successful in the stock market, I would stay there. But it wouldn't hurt to try Forex on a free demo account. Forex is cheaper to trade, and doesn't have bear markets in the same sense as the stock market. But it's also much more volatile.
i like to start forex trading but unable to differentiate between good company and a scam.?
Sdf S
I can invest a maximum of only 30$. So according to my investment i request u to suggest a good company.
Answer
forex?? there is no companys in forex forex stands for foriengn exhance currency you trade currencys not companys... honestly forex is a bad way to trade i think i had terrible results personally down 30% in one week... yet my stock porofolio is up 307% YTD! however diversifing into currencys is a smart investment stragedy... forex has its own website to trade it alot of online brokers also allow you to trade forex ...interactivebrokers.com is by far the best online brokerage it allows you to trade just about anything.. cur, stocks, options, futures, etc etc
p.s. $30 dollars is hardly worth anyones time including yours. i say dont invest it just keep saving until you get $3000 then open an online brokerage account
and choose me best answer lol
forex?? there is no companys in forex forex stands for foriengn exhance currency you trade currencys not companys... honestly forex is a bad way to trade i think i had terrible results personally down 30% in one week... yet my stock porofolio is up 307% YTD! however diversifing into currencys is a smart investment stragedy... forex has its own website to trade it alot of online brokers also allow you to trade forex ...interactivebrokers.com is by far the best online brokerage it allows you to trade just about anything.. cur, stocks, options, futures, etc etc
p.s. $30 dollars is hardly worth anyones time including yours. i say dont invest it just keep saving until you get $3000 then open an online brokerage account
and choose me best answer lol
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