Few financial instruments generate as much excitement and
profits as Foreign Exchange Trading. Traders from around the
world take foreign exchange positions for weeks, days hours or
only split of seconds, The market can have explosive moves or
steady flows giving opportunity to invest in rising as well as
in falling markets. The Foreign Exchange market has been gaining
momentum at an astounding pace. Today, it’s volumes exceeds a
staggering One Trillion U.S. dollar per day.
The demand and supply of currencies in the
foreign exchange market determine the movement of exchange
rates. This movement involves the appreciation or depreciation
of one currency vis-à-vis the other. Demand and supply, in turn,
is based on the requirements of the Governments, Businesses and
Individuals in the various countries as well speculators.
Unlike the stock market, the foreign exchange
market is not a centralized market in the physical sense;
instead, it is a borderless global market whose participants are
linked together by sophisticated means of telecommunication.
Why does Foreign Exchange Occur?
It is
impossible to envision a world without foreign exchange. Even
the smallest transaction across borders triggers a currency
exchange at one point or another. Whether importing or exporting
raw materials, labor, manufactured goods or services, foreign
exchange is an integral part of the transaction. Tourists around
the world generate substantial exchange flow. When tourists go
abroad they all must convert their currencies to local
currencies to pay their traveling expenses. These small
individual transactions generate important cash flow when
compounded.
Investors around the world, whether
large or small, are continuously hunting for investment
opportunities. Whether in the Equity Markets, Real Estate or
Bank Deposits, all international investments must at one
point or the other go through Foreign Exchange markets.
What Opportunities it Offers?
The Fundamental attraction of FOREX for
the private sector lies in the profit potential it offers in
proportion to the capital invested. Currency Margin Trading
which only requires 2% margin offers high financial
leveraging facilities. For example, by opening a Currency
Margin Trading account for $10,000., the client will be able
to take foreign exchange positions of $500,000. Or its
equivalent in other major currencies. A $100,000 account
will enable the account holder to deal in $5,000,000.
Is FOREX Trading Risky?
This risk of loss in trading currencies can be substantial. The
use of leverage can lead to large profits as well as losses. You
should, therefore, carefully consider whether such trading is
suitable for you in light of your financial condition. Whilst
profit is not guaranteed in FOREX trading, we are totally
committed to the success of each and every one of our client’s
accounts. At Century, with a disciplined approach to risk
management, our clients can take full advantage of leveraged
trading and in turn minimize the associated levels of risk. The
high degree of leverage that is often obtainable in currency
trading can work against you as well as for you.
Two-way market opportunity
Unlike the physical cash markets, in Margin Trading, investors
can trade in two ways: Selling or Buying i.e. buy first or sell
later or sell first and buy later. This means that the investor
has the opportunity to make profit as long as there are
fluctuations of prices, whether moving upward or downward.
