In a Forex transaction, currencies trade in pairs. Therefore, a trader buys one currency while simultaneously sells its pair. That is, a trader exchanges the sold currency for the one being bought.
Bohemia, NY (PRWEB) February 22, 2013
ICM Trading, providing industry leading trading and market making services, gives detailed information on Forex trading. “Forex” stands for foreign exchange, and is also known as FX. It is the buying and selling of currencies from various nations. Unlike stocks or futures, there is no centralized exchange for Forex - all transactions happen via phone or electronic network which makes Forex the most liquid trading instruments.
The daily trading volume of currencies is $3.2 trillion-which is more than all other world market exchange trading combined. More than 85% of Forex trading volume occurs in the “Major” currencies like US dollars, Japanese Yen, Euro, British Pound, Australian dollar and others.
In a Forex transaction, currencies trade in pairs. Therefore, a trader buys one currency while simultaneously sells its pair. That is, a trader exchanges the sold currency for the one being bought. So, when a trader, trades Euro-US Dollar, the trader is actually exchanging the Euro for the US dollar or vice versa.
One of the advantages of Forex trading is that it offers more leverage trading than stocks or futures-up to 400 times the value of the deposited funds in the Forex trading account. Therefore, at 400:1 leverage, a trader needs only $25 to trade $ 10,000 worth of a currency. However, unlike trading in stocks, Forex traders do not need credit approval to trade on margin. If the value of the Forex position falls to a certain level, ICM will close out all positions so a trader will never owe more money than what the trader initially deposited.
About the Company:
iTrade Capital Markets LLC (ICM) provides industry leading trading and market making services in currencies, indices and commodities to individual and institutional clients around the world. It is committed to provide superior product offerings, professional customer service and outstanding trade execution. ICM Trading provides some unique and exceptional advantages for online traders like 1 pip fixed spreads, hedging capacity, ActTrader and Meta Trader software, fast and easy account opening facilities to name a few. ICM receives the highest ratings for its financial strength as they keep segregated accounts with prestigious banks.
To learn more visit http://www.icmtrading.com