LONDON, April 12, 2012 /PRNewswire/ --
Trading forex has never been as accessible as it is now for part-time traders. Today, modern forex trading enables you to manage your trades online, through your home computer and whilst on-the-move through a mobile trading app.
The following guide looks at how part-time traders, using a City Index forex trading account, can enter the forex market and make potential gains from major currency pairs.
What is Forex Trading?
There are many keys to success, and many of them revolve around knowledge; knowledge of price movements, your chosen market, financial news, events and so on.
However, before you do anything, it's important to gain knowledge of the foreign exchange market itself. After all, it may not be suitable for you.
Forex - also known as foreign exchange, retail forex and simply FX - is one of world's most traded financial markets with an average daily turnover in excess of US $4 trillion.
Trading forex is the act of exchanging one currency for another at an agreed exchange price, such as EUR/USD, USD/JPY and GBP/USD; some of the major currency pairs that traders choose to trade.
Leverage, also known as margin, enables traders to gain exposure to the forex markets for just a small initial deposit.
What this means for traders is that if the market moves in their favour, there is potential for greater returns on their initial investment, which would not be the case if they were to buy the currency physically as is the case in more traditional forms of trading.
However, the leverage feature is a double edged sword; whilst your potential profits could be considerably more, so can your losses.
Through forex trading provider City Index, you can benefit from a leverage ratio from a scale of 20:1 to 400:1 and also utilise stop losses, making your risk both flexible and manageable.
Forex Trading with City Index
Trading forex with City Index allows easy access to 37 spot forex markets and a range of new and powerful online, downloadable, mobile and tablet trading platforms; allowing you trade whatever, whenever and wherever you are.
Forex Trading Tip: Utilise the trading education tools and resources to prepare yourself for trading the forex market; as a leveraged product, forex trading can result in losses greater than your initial deposit making it imperative that you fully understand the risks involved.
About City Index:
Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every month in over 50 countries worldwide. We provide access to a wide range of instruments including margined foreign exchange, CFD trading and, in the UK, financial spread betting with City Index.
SOURCE City Index