How Can I
Participate in the Spot Currency Market as a Trader?
From 1971 until recent years the
virtual owners of this market were the banks, multinational
corporations and large brokerage firms. If an individual wanted to
invest in this market, he could invest with a bank with a one million
dollar cash deposit backed by the requirement of a 5-10 million dollar
net worth. A slightly better option was provided by the brokerage
firms, which asked a lower minimum deposit on average of a quarter
million dollars.
But now the forex market
has been opened up to Individual investors. *Unlike the huge sums of
money previously required by the banks and brokerage firms,
comparatively far lower margin requirements are finally available that
now allows virtually any individual to trade along with the
professionals and institutions. In addition, individual investors have
the opportunity to take advantage of the growing boom in computer and
communication technologies that has made this market accessible in ways
previously exclusive only to large players.
*Without proper risk management,
this high degree of leverage can lead to large losses as well as
gains. |
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