Online currency trader
If John had arranged a guaranteed stop loss order with his provider, this would have cost him a fee. The guaranteed stop loss order would have closed him out of the trade at a certain price to prevent further losses if the market moved against him.
This may have capped his losses but would not have covered them entirely. Forex trading raises the stakes further by letting you trade with borrowed money leverage , but you'll be responsible for all losses, which may exceed your initial investment.
Margin FX trading is one of the riskiest investments you can make. Different types of foreign exchange trading products involve different risks so you should read the product disclosure statement carefully before investing.
You should also check that the forex provider you are thinking of dealing with has an Australian Financial Services Licence. Find out what an AFS Licence means. If the provider does not have an AFS licence, make sure it is regulated by an appropriate overseas authority trading with these providers may not give you recourse to Australian laws. See check an investment company or scheme for more details. Read ASIC media release warning about a fake forex website.
To successfully trade you will need to have good knowledge of foreign exchange, leverage, volatility and the conditions of each country whose currency you are trading. You will also need to predict how these conditions affect the relative value of those currencies. This is extremely difficult as so many factors come into play, including politics, economics and market confidence, and these are unexpected, random events.
There are also many software programs available for this type of trading. They may claim their programs can let you know when to make trades. Remember that no person or program can ever accurately predict movements in foreign currencies. Be wary of companies that say if you use a particular product you will get access to better exchange rates or easy money.
They may let you trial their trading platform for free at first, but this is usually just a teaser for you to buy the software or platform. You should also do your own research and consider getting separate financial advice from a licensed adviser. All our representatives are busy right now. To avoid any further delays our team will contact you via email as soon as possible. To help us serve you better, please provide the following information: What language would you like to chat in?
Currencies Benefit from leveraged currency trading. Join Now For Free Please enter your first name. Please enter your last name. Please enter a valid email address. Formula Investment House Ltd. Click here for further details. Please wait while we process your request.