The Two Sided Forex Market

The Two Sided Forex Market! The good news is that the Forex market is the biggest financial market in the world with over 3 trillion dollars traded daily. Think about that number for a second. The money to be made in Forex trading is for all intents and purposes, endless. It gets better, a whole lot better.

Now that we have established that you can make an absolute fortune in the Forex market, there must be a catch, right? Probably a very strict license so not everyone can just join the Forex world, right? Wrong. Anyone with a computer and an internet connection can, in theory become the world’s top Forex trader.

OK, how about starting off with major capital, you need that, don’t you? Negative. Anyone with as little as a hundred dollars can open huge Forex positions with brokers who provide high leverage. There are some Forex brokers who offer a 500:1 leverage. What that means, if your math skills are on the weaker side, is that you can take your $100 bank account and trade a whopping $50,000 trade.

OK so no prerequisites on the official side or the monetary one. Then the catch must be that the Forex market is slow and the profit possibilities are really not realistic. So in addition to the Forex market being the largest market on the globe, it is the most volatile by far. The market never rests and not only that but you can make profits no matter what direction it goes.

OK, I am pretty sure you got it by now. So then what IS the catch and why isn’t every single person who likes money trading Forex? Well of course there is another side to the coin and every point mentioned above has a flip side.

Take the lack of a license, for example. Anyone can trade and anyone can get involved. Great, but what that also causes is a lack of Forex regulation. Forex brokers are making promises they can’t keep and Forex service providers have been known to sell scammy products that often do not deliver. The Two Sided Forex Market

Next is the leverage point. Oh boy does this have a flip side. The higher the leverage you trade with, the more the chances that you will lose your money. It’s as simple as that.

Moving along…Volatility? Do I really need to tell you how that can get dangerous? For every trade that you gain from the Forex market’s high volatility, you could just as easily have lost. The Two Sided Forex Market

In conclusion, it should be clear to you by now that just like most things in life, if something is too good to be true, it probably is. Forex is in fact a tremendous market with endless potential but if you are not careful, that potential can quickly be transformed into devastating losses.

The Two Sided Forex Market

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