The global foreign exchange market is the biggest market in the world. The USD1.2 trillion daily turnover dwarfs the combined turnover of all the world’s stock and bond markets. There are many reasons for the popularity of foreign exchange trading, but among the most important are the leverage available, the high liquidity 24 hours a day and the very low dealing costs associated with trading.
Of course many commercial organizations participate purely due to the currency trading exposures created by their import and export activities, but the main part of the turnover is accounted for by financial institutions. Investing in foreign exchange remains predominantly the domain of the big professional players in the market - funds, banks and brokers. Nevertheless, any investor with the necessary knowledge of the market’s functions can benefit from the advantages stated above.
In the following, we would like to introduce you to some of the basic concepts of foreign exchange trading.
Trade Currency and Price Currency
When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell German marks. Or buy German marks and sell Japanese yen, or any other mixture of dozens of widely traded currencies. But there is always a long and a short side to a trade, which means that you are speculating on the prospect of one of the currencies intensification and one of them weakening.
The trade currency is normally, but not always, the online currency trading with the highest value. When trading US dollars against German marks, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD1, 000,000. When closing the position, the opposite trade is done, again USD1, 000,000. The profit or loss will be apparent in the change of the amount of marks credited and debited for the two transactions. In other words, your profit or loss will be denominated in German marks that are known as the price currency. As part of our service, RCG Trader will automatically exchange your profits and losses into your base currency if you require this.
Margin Trading
Foreign exchange trading is normally undertaken on the basis of margin trading. A relatively small deposit is required to control much larger positions in the market. For major FX trading currency crosses, RCG Trader typically requires a 1 % margin deposit for he first USD 10,000 invested. This means that in order to trade one million dollars, you need to place just USD 10,000 by way of security
If you are an experienced ‘FOREX’ Trader or just a beginner looking for the opportunities offered in the ‘FOREX’ market, Forexgen has created ForexGen Academy to give you the chance to get a ‘FOREX’ education and improve your trading skills. No hard expressions, no buzz words, and no rocket science language are used throughout these lessons.
Practice Competition
Sigma Forex Ultimate Forex Monthly Champion
Interested clients who wish to take part in this competition shall send a request via email at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Attached with the following information:
- Full name
- Phone number
- Current valid passport or government issued photo ID
It begins at the beginning of each month.
After recieving your request we will provide you with further details and with your Practice account login information which will be used in the trading contest.
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