Wednesday, September 7, 2011

How much money do I need to trade forex





Forex dealers can set their
own minimum account sizes, so
you will have to ask the dealer
how much money you must put
up to begin trading.Most dealers
will also require you to have a
certain amount of money in your
account for each transaction.
This security deposit, sometimes
called margin, is a percentage of
the transaction value and may be
different for different currencies.
A security deposit acts as a performance
bond and is not a down
payment or partial payment for
the transaction.
Dealers who are regulated by
the CFTC and NFA are required
to calculate and collect security
deposits that equal or exceed the
percentage set by their rules.
Although the percentage of the
security deposit remains constant,
the dollar amount of the
security deposit will change with
changes in the value of the currency
being traded.

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