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The difference between foreign exchange margin trading and futures


Usually, investors always confuse rebateforex rebateforexbroker cashback forex rebateforexfee with foreign exchange ForexRapidRebate Now the more popular way of foreign exchange trading Forex Rapid Rebate a spot foreign exchange margin trading, which has some common properties with futures, but does not belong to the futures category futures, as the name suggests, is a kind of goods with a deadline, that is, the subject of the transaction at some point in the future, the trader must use physical The second characteristic of futures is that they are fixed contracts, i.e., all contractual elements such as quantity and quality are fixed and the only variable item in the contract is the price. In the futures market, margin is an economic guarantee that the trader is able to bear the risk of market price fluctuations. To say, foreign exchange margin trading should be called spot foreign exchange margin trading foreign exchange margin trading and futures there is a very huge difference, that is, futures trading is established by the Futures Exchange, that is, all traders, whether they are speculators or preservationists, must participate in the transaction through the members of the Futures Exchange; and foreign exchange margin is different, it does not have a fixed exchange, is through the transaction between the banks, the so-called This difference seems to be of little significance, but it can directly affect the speculators trading behavior: the futures variety at any time, the exchanges quotation is unique; while different banks or brokerage companies in foreign exchange trading may give different quotations to customers, these quotations, although not a huge difference, but already enough to have an impact on traders! Generally speaking, most banks or brokerage firms are using Reuters or Associated Press quotes as the trading price, when the market changes dramatically will be slightly different foreign exchange margin trading market analysis and trading strategies, and stocks, futures is not essentially different, the main difference is the capital management because of the high leverage of foreign exchange margin trading, even if the trader in the direction of the correct judgment, if the use of funds Not reasonable, there may be small price fluctuations because of the price and be cleaned out of the exchange rate in the short term, such as a couple of months, price fluctuations of more than 10% is often the case, which is not surprising for the full amount of trading, but for 1%, or even 0.5% of the margin trading, it is 10 times to 200 times the profit temptation, it is no wonder that many traders are attracted to this foreign exchange market is the most risky The market is the most risky – this market created Soros; is the most exciting market – every minute someone developed, someone over; is the fairest market – your intelligence directly on the capital increase or decrease, no one interferes with it can quickly make you from destitute to rich, but also can easily make you lose your home, and even trading addiction is also very possible But in any case, if you do not have a lot of trading experience, please do not participate in a large scale: less than three years of experience in futures trading or less than five years of experience in stock trading, in the foreign exchange market are called novice

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