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Forex is always traded in Lots, so in actual fact you cannot purchase just 100 Euros, (or in fact 100 units of any currency). A standard Lot is $100,000, click here some brokers offer Mini-Lots of $10,000, and a few brokers also offer Micro-Lots of $1,000. The good news is you don't need anything like $100,000 to open a Forex account or to trade the Forex.

With Broker A the Margin required is 2 % and so you will put $300 (2% x $15000) as margin and south african forex thus buy 1 lot of GBP/USD. But with Broker B given the stock market required is 1 % you will need to put only $150 and so you buy 2 lots. Now let's say that the trade is a bad one, and the GBP/USD moves 50 pips in the wrong direction. With broker A you lose $50 ($1 x 50 pips x 1 lot) but with broker B you lose $100 ($1 x 50 pips x 2 lots).



However, Trading on margin increases both potential for profits as well as losses. In Forex you can never lose more than you invest losses are limited to your deposits and usually brokers will close a transaction that extends beyond your margin deposit by executing a margin call.

stratagies If you have a computer, a high-speed Internet connection, and a little money to "play" with, you can become a FOREX trader, especially if you know how to use leverage to your advantage. That is what this article is about.

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